Essay about The American Investment Banking Industry

2041 Words Oct 23rd, 2016 9 Pages
The American investment banking industry has come a long way since its emergence during the Civil War era. In essence, investment bankers are corporate financial advisors interested in assisting their clients with raising money in capital markets, involving themselves heavily in mergers and acquisitions activity, and they also offer different types of financial advisory services. Investment banks are very useful for companies looking to expand or to fund major projects, for example, if company X decided they wanted raise capital by releasing an Initial Public Offering (IPO), they would seek out investment bankers in order to price their new stock price precisely in order to make it as attractive to public investors as possible. The more attractive the offering is then the higher the stock will rise in a shorter period of time, so with that being said revenue generated by investment banks is heavily dependant upon market fluctuation. Typically, new IBs (Investment Bankers) are attracted to the field because of the “glamor” that the job carries with it such as high salaries, fancy dinners with top clients and other bankers, massive bonuses, and the opportunity to play a key role in closing massive deals. College graduates who are qualified to work as IBs can expect to make $100,000 the day of graduation and can easily enter the millions range within 10 years and with an MBA; if someone decides to stay with the industry for several years and makes it to a title as…

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