Investment Banker in 1397: Giovanni de' Medici founds the Medici Bank

What does an investment banker actually do? Two things: advise and underwrite. Advisory bankers guide companies, governments and funds through mergers, acquisitions, sales and restructurings; capital-markets bankers raise money for them by underwriting new stocks and bonds and placing them with investors. Investment bankers do not manage individuals' savings or take deposits — the day-to-day work is valuation, negotiation, documents and long client meetings.

Is an investment banker the same as a regular banker? How much do investment bankers earn? In the United States in 2024, first-year analysts typically earned around $170,000–200,000 in salary plus bonus, and managing directors from roughly $1 million to many multiples of that in strong deal years. London, Frankfurt, Hong Kong and Tokyo pay less at every level, and bonuses — the majority of senior pay — swing sharply with the deal cycle.

What degree do you need to become an investment banker? A bachelor's degree, almost always from a university the banks actively recruit at; finance and economics are common but not required — London desks hire historians and classicists. There is no pre-hire license: US bankers sit the FINRA Series 79 exam after joining. The MBA is a separate, later door, used mainly by career-changers entering at associate level.