The Intersection of Finance & Investment Banking

Finance and investment banking are interconnected through the transfer and movement of capital.

Capital is how the world of finance goes around. Flowing from one party to another, whether through an exchange of goods or investment, capital moves from one party to another in finance and through investment banks depending on the type of transaction.

Without capital, there would be no finance. The economy and the world of finance function through capital. Managing, investing, and protecting capital is what most people in finance are involved in.

The financial world comes with its own set of skills and skillsets. Producing results under pressure, meeting deadlines, and coordinating with a lot of parties is the norm.

Pursuing a Career in Finance

People in the financial world are very demanding, and expecting since it deals with money and large sums of it. They demand excellence and nothing less. The job has to get done and will get done because they’ll make sure of it.

Time is money to people in finance, and any time wasted is money wasted. Their objective is to make money and generate as much of it as possible. People sometimes take this to an extreme in finance and can be difficult.

The skills needed are pretty standard throughout all sub-industries of finance. You’ll need to have a great work ethic, care about your work, make sure everything is the way your superiors want it, and much more. A lot of these come over time, with practice and experience.

Investment Banking

Investment Banking is an industry within finance that expedites the learning curb and forces you to learn fast. Dealing with complex models, calculating formulas, and projecting outcomes are all tasks you’re forced to do in investment banking, and a lot gets thrown on to you at once.

Banking is a place for people who are looking to build their skills, their experience, and their work ethic. Odds are you’ll be forced to produce in a high-pressured environment, with a lot of work on your plate. The life of an investment banker usually ends their day around midnight every night of the week.

To be successful in banking, you’ll need to be able to juggle a lot of things at once, manage deadlines, and produce a high level of work. It might start a bit rough, but with time and practice, you can get the hang of it.

The beginning workload in banking can be overwhelming. Putting together presentations, memos, and models are complex and intricate. The different variables, assumptions, and formatting that goes into all of them are significant. It’s the work that no one at the investment bank wants to do but has to get done, and if you’re a beginner in investment banking, you’ll be the one doing it.

It’s tough to manage everything that must get done for your bosses to successfully pitch their ideas or put together a presentation for them to present. It’s ultimately a collection of a lot of research, analysis, and compiling you’ll be doing to support their hypothesis or strategy.

There’s a lot of prestige and fame that surrounds Investment Banking for a reason. It often weeds out people who aren’t able to handle the intense pressure and heavy workload. It’s not for everyone and something that you have to be determined to do it.

The industry is incredibly challenging to handle but rewarding financially if you’re able to hang in there and maintain the lifestyle. Pushing through the rough years that are what make an investment banking analyst takes a lot of courage and determination. If you truly see yourself in one of the positions or companies that require a banking background, then you’ll have to work through the rough years in the beginning.

The high class, professional finance people we all imagine had to go through the incredibly rigorous investment banking analyst process. It’s known to be the most difficult and the hardest industry to break into with good reason.

Odds are the people at the top who traded a lot of their lives for their careers. Some people find it worth their while, while others don’t.

Investment Banking is one of the industries at the top of the finance ladder, where the pay is high, the pressure is high, and the figures you’re working with are even more senior. The prestige that surrounds is from the large transactions, the brand names, and the recognition that surrounds it.

Breaking Into Finance

High finance is a tough world in and of itself. Everyone envisions to be able to get there, but few are willing to put in the time, sacrifice, and work to get there. The people at the top worked years and years and spent decades to get there.

The connection between finance and investment banking is a deeply rooted one. One that is heavily affected and influenced by the other. Finance is a broad term that generally deals with money and the finances of a company. Investment Banking is the industry within finance which deals with the selling, acquiring, and restricting of large companies and institutions.

The Bottom Line

It requires substantial collaboration, coordination, time, and expertise to make it work. It’s a result of humans who were in finance and wanted to take things to the next level. Instead of dealing with small or individuals finances, an industry was created to handle large corporations and companies’ finances.

Figuring out how to be an investment banker is one big challenge that is tough to navigate, but one that can be financially rewarding. If you think you can do it, and become one, be ready to put in all you got, it’s going to require it.

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Michael launched Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.