/biz/ - Business & Finance

>>448043
Because people don't know what it is and apply the label to everyone in finance. I've heard stock brokers, financial advisors, private equity guys, and even traders called investment bankers. Lol.

Investment bankers connect businesses with the capital markets. They underwrite new stock/bond offerings, advise on mergers & acquisitions, and do valuation work in private markets.

>>448079
My cousin sell pension schemes to FTSE 500 and he call himself an investment banker. His company works with investment banking, but I don't he does it himself.

>>448079
pretty much this

>>448106
and based upon your description he isn't and investment banker

They use an exclusive license and work behind a wall of opacity created by jargon and compartmentalization to take commissions from their customers to merely move money around.

>>448276
>They use an exclusive license and work behind a wall of opacity created by jargon and compartmentalization to take commissions from their customers to merely move money around.
Why don't you just admit that you don't know what they do, but that you're jealous because anything is better than your job at McDonalds?

Anyway, investment bankers don't have exclusive rights to the capital markets, there are no barriers to entry to the field, and they aren't even a regulated industry (except to the extent that they market securities). Anyone can be an investment banker.
>Except autists like you, because it involves talking to people in a grown up manner.

>>448079
wow that second paragraph was just gibberish to me, literally have no idea wtf that stuff means and i'm fluent in english

>>448043
Investment banking has many divisions. Only one I'm familiar with is the M&A. They act as advisors for their clients who seek opportunities to acquire other companies or need help with a merger. They're basically salesmen who pitch other companies that their client might be interested in acquiring another business.

As far as I know, the position is notorious because the business structure used to be "first class business in a first class way." Now it's more like any business in any way as long as it makes money.

>>448410
Don't be mad that he busted you, mr. Investment banker, for showing everyone that your job is to basically fuck people over.

>>448502
someone watched too many movies

>>448503
Oh I'm sorry, does the truth hurt you that much, mr. Investment banker?

>>448488

It's just jargon, it has no actual complexity. Here's an example. You're interested in buying a company. It has revenues of about 250mil and profits of about 35 mil and has for a few years now. How much should you pay for it?

Answer: About 1 billion. Just multiply the revenue by 4x if they're steadily profitable . There, I just saved you 5 years and about 300k getting an MBA from an Ivy.

It's hand waving and guess work with 0 accountability and repercussions. I remember in Oct 2012 reading pieces by almost every commodity analyst about how gold had no downside, it was still up up up when it was sitting at the 1800s. All BUYs not a single HOLD even. Less than two years later it's in the 1200s, and I'll put good money on 0 of them having been fired.

>>448496
>Investment bankers are basically salesmen

How about you stop 'contributing' to threads in which you have no fucking idea what you're talking about? Thanks.

>>448507
Yeah I've noticed that you've contributed dick all to the conversation. Soooo, I don't think that you should be telling anyone to shut up.

>>448507
learn what a pitch book is plz. I'm only talking M&A

>>448506
wow ty good post

>>448506
this post corroborates well with what i've been reading in "a random walk down wall street" by burton makerel

>>448506
Fuck you. I wouldn't sell at a 4x multiple with a gun to my head. Back to school, junior.

>BTW, multiples are run off EBIT or EBITDA, not revenue. Revenue can be seriously manipulated. But if you knew anything, you would have known that too.

>>448543
this

>>448043
>>448079
Not really. They sell securities to people and groups. Securities is a catch-all term for stocks, loans, mortgages, etc. They are in trouble because they usually sell high risk securities and label them as safe investments. It's as if I told you that Cyanide was safe and I knowing full well it really isn't. Not all IB are bad, but there were many who sold high risk securities for a larger profit. The way many Invesment Works is they give bonuses to the ones who sell the most securities or the ones who sell the most high risk securities. In an effort to increase their sales, they sold high risk securities to people who wanted stable gains. Closely related to Insider Trading.

>>448572
that's a small part of what they actually do. Selling securities is part of financing and sales. Bulge Bracket investment banks don't typically take on businesses they are not sure of. Although they still sell "junk bonds," that is not their primary target. Also, sales and trading division of IBs only deals with selling and trading securities which are their own clients'. Let's not forget that M&A is probably the biggest money maker for IBs because of its low cost and it has little to do with securities altogether.

>>448507
to some extent they are

every organization has a sales component,
they basically sell deals and their advisory services

>>448410
>except to the extent that they market securities

This is just about the biggest barrier to entry that exists. Ever filled out a U-4?
>10 years of work history
>all complaints and disciplinary actions available on the web
>commit a felony; lose your license
>commit a financial misdemeanor; lose you license
>employers must pay the cost of licensing

>>448079
>mergers & acquisitions