How does an investment bank work?
Investment Banking Training at Quality Thought
Overview
Step into the world of high finance with Quality Thought’s Investment Banking Program — a specialized training course designed to prepare you for a dynamic career in global finance, mergers and acquisitions, IPOs, and corporate advisory. Whether you are a fresh graduate, finance enthusiast, or working professional looking to pivot into investment banking, this course equips you with the essential skills and industry insights.
Why Choose Investment Banking?
Investment banking is one of the most prestigious and rewarding career paths in finance. Professionals in this domain work on:
Raising Capital for corporations and governments
Mergers and Acquisitions (M&A) strategy and execution
Equity and Debt Market Advisory
Initial Public Offerings (IPOs)
Financial Modelling & Valuations
It’s a field known for its intellectual challenge, high-impact work, and significant earning potential.
Course Highlights at Quality Thought
✅ Industry-Relevant Curriculum
Covers core concepts like Financial Statement Analysis, DCF & Relative Valuation, Pitch Books, M&A Strategy, and Deal Structuring.
✅ Hands-On Learning
Work on real-life case studies, investment decks, and Excel-based financial models.
✅ Expert Mentors
Learn from seasoned professionals with experience at top investment banks and consulting firms.
✅ Job-Focused Training
Resume building, interview preparation, mock investment banking interviews, and placement support.
✅ Certifications
Get certified on course completion – a valuable addition to your professional profile.
🧠 Core Functions of an Investment Bank
1. Capital Raising
Investment banks help companies raise money from investors. This is done through:
Equity Financing: Issuing shares via an IPO (Initial Public Offering) or follow-on offering.
Debt Financing: Issuing bonds or arranging syndicated loans.
📌 Example: When a tech startup wants to go public, an investment bank underwrites the IPO—pricing the shares, finding buyers, and listing the company on a stock exchange.
2. Mergers and Acquisitions (M&A) Advisory
They advise companies on buying, selling, or merging with other businesses. This includes:
Valuation of companies
Negotiation support
Due diligence
Deal structuring
📌 Example: If Company A wants to acquire Company B, the investment bank will value both companies, help structure the deal, and ensure legal and financial compliance.
3. Underwriting
The bank underwrites (i.e., takes the risk for) new securities by buying them from the issuer and selling them to investors. This guarantees the company will raise capital even if investor demand is low.
Firm Commitment: Bank buys the full issue and resells it.
Best Effort: Bank tries to sell as much as possible but does not guarantee full sale.
4. Sales and Trading
They operate large trading desks that buy and sell financial instruments like:
Stocks
Bonds
Derivatives
Currencies
These trades can be done on behalf of clients (broking) or for the bank’s own profit (proprietary trading).
5. Asset Management & Research
Many investment banks also provide:
Wealth management for institutional and high-net-worth clients.
Equity research reports that guide investors on buying/selling stocks.
⚙️ How Investment Banks Make Money
Advisory Fees (e.g., M&A deal consulting)
Underwriting Fees (percent of capital raised)
Trading Profits
Asset Management Fees
Commissions on Sales
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