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What are steps one should take in order to become an investment banking analyst?
I am really interested in math, and I enjoy dealing with data. I think technology is really useful, and a quick navigation tool. #investment-banking
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Doc’s Answer
Great Question Ashley, Investment banking analysts serve a critical role in the financial industry.
EDUCATIONAL REQUIREMENTS & CERTIFICATIONS
A bachelor's degree serves as a minimum of education for investment banking analysts. Investment bankers are not required to have an educational background in a particular field, but those with business-related undergraduate degrees such as finance, commerce and accounting have an advantage at many firms because of the direct relevance of their education. A graduate degree, particularly an M.B.A. degree, not only can help an investment banker land a job, but also provides a notable boost for career advancement. In fact, an M.B.A. can help a new investment banker start a career in a more advanced role.
FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) – Investment bankers must register with the Financial Industry Regulatory Authority, and must pass designated FINRA exams to work on certain tasks. For instance, an investment banker who works on structuring private securities offerings must pass either the Series 79 exam, which qualifies him as an investment banking representative, or the Series 82 exam, which makes him a private securities offering representative, according to FINRA.
CHARTERED FINANCIAL ANALYST (CFA) – Investment bankers also can choose to improve their credentials by earning a chartered financial analyst designation, a strenuous process that involves passing exams in areas such as financial markets and instruments, corporate finance and asset valuation. To obtain CFA certification, an investment analyst must hold a bachelor’s degree, have four years of relevant professional experience, and pass three different examinations. They can also obtain further certification in specialty fields. Doing so will also greatly improve their advancement prospects.
INVESTMENT BANKING ANALYST DESCRIPTION
Investment banking analysts are entry-level professionals who provide support to associates and investment bankers in areas that include equity and debt offerings, valuations, private placements, leveraged buyouts, mergers and acquisitions, and strategic advisory work. Analysts are typically hired straight out of college, participating in a two-year analyst program with the possibility of being offered employment for a third year or being promoted to associate. Typically, these professionals are employed by large financial firms or institutions, venture capitalists, brokerages, or fund managers. Their role is highly stressful and they may work unsociable hours, particularly if they also focus on global financial markets.After two or three years, many analysts leave to earn their MBAs or pursue other opportunities.
TYPICAL INVESTMENT BANKING ANALYST CAREER PATH
√ Intern or Summer Intern
√ Analyst
√ Associate
√ Vice President
√ Director
√ Senior Vice President
√ Managing Director
Hope this was helpful Ashley
EDUCATIONAL REQUIREMENTS & CERTIFICATIONS
A bachelor's degree serves as a minimum of education for investment banking analysts. Investment bankers are not required to have an educational background in a particular field, but those with business-related undergraduate degrees such as finance, commerce and accounting have an advantage at many firms because of the direct relevance of their education. A graduate degree, particularly an M.B.A. degree, not only can help an investment banker land a job, but also provides a notable boost for career advancement. In fact, an M.B.A. can help a new investment banker start a career in a more advanced role.
FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) – Investment bankers must register with the Financial Industry Regulatory Authority, and must pass designated FINRA exams to work on certain tasks. For instance, an investment banker who works on structuring private securities offerings must pass either the Series 79 exam, which qualifies him as an investment banking representative, or the Series 82 exam, which makes him a private securities offering representative, according to FINRA.
CHARTERED FINANCIAL ANALYST (CFA) – Investment bankers also can choose to improve their credentials by earning a chartered financial analyst designation, a strenuous process that involves passing exams in areas such as financial markets and instruments, corporate finance and asset valuation. To obtain CFA certification, an investment analyst must hold a bachelor’s degree, have four years of relevant professional experience, and pass three different examinations. They can also obtain further certification in specialty fields. Doing so will also greatly improve their advancement prospects.
INVESTMENT BANKING ANALYST DESCRIPTION
Investment banking analysts are entry-level professionals who provide support to associates and investment bankers in areas that include equity and debt offerings, valuations, private placements, leveraged buyouts, mergers and acquisitions, and strategic advisory work. Analysts are typically hired straight out of college, participating in a two-year analyst program with the possibility of being offered employment for a third year or being promoted to associate. Typically, these professionals are employed by large financial firms or institutions, venture capitalists, brokerages, or fund managers. Their role is highly stressful and they may work unsociable hours, particularly if they also focus on global financial markets.After two or three years, many analysts leave to earn their MBAs or pursue other opportunities.
TYPICAL INVESTMENT BANKING ANALYST CAREER PATH
√ Intern or Summer Intern
√ Analyst
√ Associate
√ Vice President
√ Director
√ Senior Vice President
√ Managing Director
Hope this was helpful Ashley
Updated
Clay’s Answer
Hi Ashley, I think it’s about identifying businesses and people you are interested in knowing more about and networking in those spaces. Investment banking is first and foremost about managing relationships, being human and trying to help. If it’s about the money...then it’s probably the wrong place for you, as making lots of money is possible but if that’s the only motivation, it could prove to be a grind.
Read “What it Takes” by Stephen Schwarzman, Founder of Blackstone
Clay recommends the following next steps:
Updated
Jana’s Answer
Majoring in finance at university is the first step. Also doing some important finance relevant certificates such as the CFA. CFA is a very handy in this field! You can also enroll in some data analytics courses such as tableau,powerBI etc..
Updated
Christa’s Answer
Thanks for your question! A good start is always a strong background in Finance and Accounting. Take as many as you can in college. It also never hurts to know your way around an Excel spreadsheet. I hope that helps!
Thank you!
Ashley