Banking/Mortgage

Industry Overview

While huge company mergers, initial public offerings, and other big business transactions may make the headlines, most of them never could have happened with out the hard work and long hours of a solid investment bank behind them. Investment banks are experts at calculating what a business is worth, usually for one of two purposes: to price a securities offering or to set the value of a merger or acquisition. In both cases, I-banks charge hefty fees for providing this valuation service, along with other kinds of financial and business advice.

In this sense, I-banks are intermediaries between the issuers of securities and the investing public. I-banks make markets to facilitate securities trading by buying and selling securities out of their own account and profiting from the spread between the bid and the ask price. In addition, many I-banks offer retail brokerage and asset management services. Retail brokerage services deal directly with the customers, allowing individuals and small organizations to purchase stocks, bonds and other financial service products directly. Asset management services include creating and overseeing a portfolio of products or services, generally for a wealthy individual or organization.

Not surprisingly, the center of this industry rests in the lofty aeries above Wall Street and Midtown in New York City. Other hot spots include London, San Francisco, and Silicon Valley. Firms also compete in Frankfurt, Tokyo, Hong Kong, and other foreign markets 24 hours a day. InternZoo lists I-bank opportunities – also 24 hours a day.