Knowledge is power in today's business world and where power goes, manipulation can't be far behind. Not a day goes by without talk of a new merger, acquisition or initial public offering (IPO) career in the securities industry can offer exciting work if you enjoy working in a competitive and demanding atmosphere. Investment bankers, stock brokers, and stock traders all make up the securities industry providing services to each other, as well as the general public. The primary differences between the three are the services they provide and who they provide these services to. Investment banking seems to be the most interesting of the three, as well as the most rewarding. This is due to the nature of the job an investment banker must perform. A career as an investment banker has its pros and cons just as any career does, but if you're looking for a high-demanding, high-risk career that at times is very rewarding financially, investment banking could be the career.
Investment banking has been around since stocks have been issued and bonds sold, but the field demands little, if any new jobs before the 1980's. This was due to the low complexity of the financial markets. Since then, investment banking jobs have been significantly growing due to the availability of complex securities and high-yield bonds, also known as junk bonds. Now that the financial market has become more complex, companies that didn't require investment bankers need their advice to effectively help their company sell stocks and bonds, and to make financial plans for the future.
To be considered for a job in the securities industry one must be content with living in or near a large city, and have at least a four-year degree in some type of business field, typically finance or accounting. The typical analyst works mainly on analytical work and also does a fair amount of writing. From here an analyst has the option to either go back to school and pursue an MBA, or try to advance to the position of a junior associate, which basically has the job of supervising the...
Investment and Portfolio Analysis With the increasing economic downturn in the economy, the need of investment has increased considerable. The potential investors generally foregoes their current leisure and earnings and investment their earnings and expect to earn benefits in future for the same. For analyzing the investment, we have taken into consideration a hypothetical investor who has $50,000 which needs to be invested in different, in different assets. Investment is one of the
9% for the past seven years (Index Mundi, 2009). An inflation rate of 2% per annum shall be assumed for our future cash flows model, the additional 0.1% reflecting a desire for conservativeness in our estimates. Karl's pension pays him 80% of his current salary, which is not expected to increase in the final three years. The pension benefit is indexed to inflation. We will assume a 30% tax rate for
A common thread through these fifteen stocks is that they not only represent diversification as a group, but most of the companies chosen also have a range diversification within the company's operations. The companies are spread around the world, and include a number of sectors. For example, within technology the portfolio has access to the health care sector through Cerner; within ADRs there is exposure to the Internet, chemicals and
This would play a role in helping to bring the Czech Republic into the EU in 2004. The effect that this would have on the Prague Stock Exchange is that it would cause it to rise to 1,940. At which point, it would have a severe down trend economy during 2008 and into 2009. The only difference is: that the various reforms and economic policies that the government was
Investments Assets Stocks A stock is a share of ownership in a company, representing a claim on the company's assets and earnings. The importance of being a shareholder is that the investor has a claim on assets and is entitled to a portion of the company's profits, which may be paid out in the form of dividends (Stock basics, 2011). There are positive and negative aspects to stock ownership. One such positive is
These types of investments are often illiquid, so the investor needs to view them as long-term investments. However, the lack of liquidity also means that for the most part they have low levels of correlation with the broad market. Derivatives are another possibility, and their potential impact on the portfolio will be discussed in the next question. They can either increase risk or decrease risk, depending on the type of
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