The truth about investment banking is there is more to success than just knowing the numbers. You have to understand that investment banks provide a service and that service requires multiple teams to execute at a high level. Read below to understand where you may fit amongst the different teams at an investment bank.
Corporate Finance. This team is like the financial consulting arm of the bank. You will provide strategic advice in fund raising and merger situations. To do well on this team, you must have a good understanding of foreign exchange, economic trends, and specific financial strategies. As an MBA you will normally begin in the associate role with an opportunity to supervise some analysts. You should plan to be in the associate role for about 3-4 years.
Sales/Trading. Corporate Finance comes up with a new proposal it is the job of the Sales/Trading team to sell this new item to the marketplace. As part of your role, you will have to interpret news, events, and market shifts to your clients. Your clients invest large sums of money with you and they do not like to hear about bad news in the market. Your job is to keep bad news from creating a panic in your clients. If you can move sales volume and grow assets the under your control, you will be rewarded well.
Research. This team is typically separated into fixed income (debt) and equity departments. If you work in this group you probably focus on a particular industry such as software, oil, or health care. Simply put, your will need to consistently predict the direction of stocks in your given industry. You are responsible for the buy, sell, and hold recommendations that guide investor decisions. The best analyst is the person whose predictions are closest to the real quarterly results of the companies in their focus group.
Investment banks come small (boutique), medium (regional), and large (bulge bracket). Depending on the kind of company you work for your particular experience may vary. Still, it is important to say again that a successful investment banker understands more than number crunching. Your clients depend on your financial knowledge and judgment. Understand your role as best you can and provide your clients top notch advice.