What is investment banking? Particularly, how is it distinguished from commercial banking?

 

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

What is Investment Banking?

Investment banking is a specialized segment of banking that focuses on helping companies, governments, and other entities raise capital and provide financial advisory services related to large, complex financial transactions. These include:

  • Mergers and Acquisitions (M&A)

  • Initial Public Offerings (IPOs)

  • Debt and Equity Financing

  • Corporate Restructuring

  • Underwriting of Securities

  • Valuation and Financial Modelling

Investment banks act as intermediaries between issuers of securities (like companies) and investors, and they often take on advisory, underwriting, and sales/trading roles.


Investment Banking vs Commercial Banking: Key Differences

FeatureInvestment BankingCommercial Banking
Primary RoleCapital raising, advisory services, underwritingAccepting deposits, giving loans, and managing savings
ClientsCorporates, governments, institutional investorsIndividuals, small businesses, corporations
Revenue ModelFees, commissions, trading profitsInterest on loans, fees on accounts
Risk ExposureMarket risk, deal riskCredit risk, liquidity risk
Products/ServicesIPOs, M&A, private placements, financial restructuringSavings accounts, loans, credit cards, fixed deposits
Regulation FocusSecurities laws and capital markets regulationsCentral bank regulations (e.g., RBI in India)
Example FirmsGoldman Sachs, Morgan Stanley, JPMorgan (IB divisions)HDFC Bank, SBI, ICICI Bank, Bank of America (retail side)

Comments

Popular posts from this blog

How hard is it to get into investment banking?

What is the easiest way into investment banking?