The pros and cons of investment banking

Lynn Prins

If you live by the motto “work hard, play hard” then perhaps investment banking is for you. Take a look at what the world of investment is all about and all it entails.

An investment banker however is not really a “banker” per se, but specialises in a specific area of economic development. An investment banker works for a financial institution who deal specifically with raising funds for companies, governments and other entities.

Some deal in mergers and acquisitions, while others deal in a specific field like the automotive market, financial services or exporting.

The point of hiring an investment banker is that such a person is meant to be an expert in your field of interest and can handle the legal and bureaucratic hurdles required for financing and expansion.

Hiring an investment banker, essentially means you’re hiring a well-known expert in the field to help you and your business expand.

Listed are the pros and cons of investment banking

High learning curve:

Recent finance, business or accounting college graduates find that a career in investment banking offers one of the highest learning curves out there. Within your first year of banking you are exposed to top business leaders and are able to assess how they think, how they create strategy for the Fortune 500 companies they manage and the thought processes behind each decisions.

Open doors to other careers:

Banking is the boot camp of all jobs.  The reason for this is that it is extremely challenging both mentally and physically. It also takes a lot of hard work and the exposure you earn working with top-level business leaders and corporation can potentially lead to many careers outside of the bank.

A job in Banking stamps your career passport with “hard worker, contributor, proactive self -starter and team player”.

Insiders pass to a life-long network:

Once you’re in, you’re on the inside. Investment bankers are a group of smart and fun individuals. They like to live by the motto “work hard, play hard”. They undoubtedly work tremendously hard, which is why you should too un order to become a member of the permanent investing network.

The cons of investment banking

Sleep is for the dead:

Usually you would expect a student or club goer to pull an all-nighter, but sadly an investment banker has to pull an all-nighter in a cubicle at work. This is not always the case though, but keep in mind that working hours are unpredictable and depends on the situations you find yourself in. Remember, it is possible to work a 15 hour plus day and then go on to attend unexpected meetings.

Stress becomes your middle name:

With the long hours comes no small amount of stress due to the fact that investment bankers deal with huge sums of money and are expected to keep on turning a profit. Dealing with abnormal working conditions, requires you to keep healthy and avoid excessive caffeine.\

If you are serious about investment banking, analyse your current lifestyle as well as the pros and cons. It is a taxing occupation that requires many man hours but also reaps many monetary benefits.

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