Wall street oasis why investment banking

For example, I was a CS major and expressed an interest in tech companies for my tech banking interviews. This works well with industry groups. Answering "why investment banking? In today's blog, I wanted to share our take on answering this question if you are a liberal arts major. As always, we'll follow a simple template: 1 a brief description of how to think about these questions, 2 what represents a poor answer, 3 what represents a good answer, and lastly, 4 an actual example of a great answer.

Investment banking offers liberal arts majors one of the few relatively well-defined and challenging career paths available to "smart but skill-less" undergrads. Obviously, many also enter the industry with the obvious intention of making a great deal of money.

Of course, answering this question in an interview begs for a little nuance. This question, regardless of whether it is posed to a liberal arts major or business major, should also always be looked at as an opportunity to tell your story. As an interviewer, it is better to hear the "reassuring" answer rather than the brutally honest one even though the interviewer knows you are being political. Great answers Great answers to this question focus on skill-building, networking, and love for difficult challenges.

You want to emphasize that being a non-business major you are excited to learn the complex accounting and finance skills involved on the job and eventually transform into an Analyst that has potential to significantly impact the group.

You also want to relay that you are excited to work with driven, smart, and motivated colleagues and are looking forward to pushing your limits from a work standpoint.

You ultimately want to come off as a positive, "go-getter" type. Specifically, banking interests me because it presents an opportunity to develop substantive analytical skills, while developing a close network of colleagues.

While working long hours is scary to some, to me, it is in a strange way exciting. I have a very strong work ethic and I am excited to be involved in work that helps companies be better off strategically and financially.

Why IB over Private Equity? I am now about to graduate and am in final round interview at a BB. Why would someone pick investment banking over consulting? Besides the higher pay, is there really any reason to choose i-banking over consulting? If I'm not mistaken, they are both considered "finance" careers thus require similar skillsets, although a consultant requires more leadership skills whereas an analyst just gets bitched at to crunch numbers and perform excel monkey tricks all day.

And consulting provides a better quality of life, better exit opps, and a better chance at a top MBA program. Top consulting firms are also harder to get into than top banking firms, thus more prestigious, in a way. I would really like some thoughts on this, because as a sophomore who still has time to shift focus on future career paths, I'm wondering if there's really anything i-banking has to offer over consulting besides a higher salary obviously an important selling point.

But if I'm asked in an interview "Why i-banking and not something else like.. Guys, I have been preparing for ib interviews and have prepared fit questions well atleat i think so I can draw some parallels on those and create my unique. Guys, I'm get slaughtered by this question Most of it is pretty boring, monotonous work When I told an interviewer I enjoyed working with the financial asepcts of the company and not so much the operational side, and that I wanted to immerse myself in fiancne and to learn as much about it as possible, he said That's more finance that what a banker does.

A banker focuses more moving business and pitching ideas" and at some point he said, "have you considered research? What is a good way to answer the questions to completely set the interview back on the right track? The standard "I want to learn a lot," "I like the fast-paced environment," "I'm in it for the excitement" answers haven't been working well.

Could you guys aid me tailoring an answer that dominates? Folks who have chosen BB or Middle Market or vice versa, why did you make or want to make that descision? Why the hell would you choose Investment Banking?! I am curious to find out people's reasoning behind working in i-banking, besides the money and prestige. What motivates you to keep going? Why do YOU want to do investment banking? What's your answer for this question?

Just wondering what people usually say, I'm having a hard time putting it all together. How do you guys answer the why questions in Investment Banking? I think it happens to most of you. I was trying to reach out to some of my alumni these days. We talked a lot about the finance and investment banking. However, when it comes to why you wanna do it? I sometimes said well, I want to make most of my time as a young man and I like challenging works. Plus, I has a lot of good exit opportunities I know it's been a tricky question, you can't just say well I am greedy and I love green, right?

So what's your answers? Clearly, "i'd like to make a ton of money" isn't gonna hack it. I'm wondering what some of the best you guys have heard are. Or when asked by friends or casual acquaintances, how do you respond without sounding like you are full of yourself?

Quia inventore nemo similique neque voluptatem. Qui consequuntur voluptates adipisci repellat ut nisi. Quas fuga esse explicabo consequatur ut et dicta dolor. Autem pariatur reiciendis odio eveniet sunt sed illum magnam. Sed ut debitis delectus dolorem.

Quos quas necessitatibus vel veniam quibusdam officiis. WSO depends on everyone being able to pitch in when they know something. Perferendis eius velit omnis quia non ipsa ducimus. Saepe minima quisquam quasi dicta quia officiis sit. Minus perferendis et natus suscipit commodi adipisci. Ipsa aut at sint rerum consequatur.

In deserunt sed totam ea expedita aut alias beatae. In at harum aut nihil. Investment banking wins in this area. There is a clear path with defined time frames for career progression in investment banking.

This begins with the analyst position two to three years , then transitions to an associate position three-plus years , after which one is in line to become a vice president and eventually director or managing director.

The career path in equity research is less clearly defined but generally goes as follows—associate, analyst, senior analyst, and, finally, vice president or director of research. Within the firm, however, investment bankers probably have better prospects for reaching the very top, since they are deal makers and manage relationships with the firm's biggest clients.

Research analysts, on the other hand, might be viewed as number crunchers who do not have the same ability to bring in big business. Investment banking probably wins here as well, albeit only over the longer term. Equity research associates start off by doing a lot of financial modeling and analysis under the supervision of the analyst who is responsible for the coverage of a specific sector or group of companies.

But associates also communicate to a limited extent with buy-side clients, top management of the companies under coverage, and the firm's traders and salespeople. Over time, their responsibilities evolve to less financial modeling and a greater degree of report writing and formulating investment opinions and theses. However, there isn't a great deal of variability in the job functions of associates and analysts.

What varies is the relative time spent on these functions. Investment bankers, on the other hand, spend the first few years of their careers immersed in financial modeling, comparative analysis, and preparing presentations and pitchbooks.

But as they climb the ladder, they get the opportunity to work on exciting deals such as mergers and acquisitions or initial public offerings.

Research analysts only get this opportunity occasionally, when they are brought "over the wall" the "wall" refers to the mandatory separation between investment banking and research to assist on a specific deal involving a company that they know inside out.

A bachelor's degree is a must for any aspiring equity research analyst or investment banking associate. Common areas of study include economics, accounting, finance, mathematics, or even physics and biology, which are other analytical fields. However, it is very unlikely a bachelor's degree alone will be enough to get a job in these fields. The CFA, widely regarded as the gold standard for security analysis, has become almost mandatory for anyone wishing to pursue a career in equity research.

But while the CFA can be completed at a fraction of the cost of an MBA program, it is an arduous program that needs a great deal of commitment over many years. The MBA curriculum, on the other hand, by virtue of being more business-oriented and less investment-oriented than the CFA, makes it more suitable for the investment banking profession. However, the competition to get into the best business schools—which is where most Wall Street firms hire their associates—is intense.

Many aspiring investment bankers enter into some other financial field, perhaps working as analysts or advisors, and work toward their MBA. Investment bankers should have an impressive knowledge of financial markets, investments, and company organization. After a few years, the aspiring investment banker returns to complete an MBA or receives professional certifications and licenses. When all is said and done, it may take five to six years after receiving an undergraduate degree before being considered for an investment banking role.

These analysts need to be able to perform complex calculations, run predictive models, and prepare financial statements with quick turnarounds. As noted earlier, financial modeling and in-depth analysis are common to both investment bankers and research analysts in the earlier stages of their careers. Later on, the skill sets diverge, with investment bankers required to be adept at closing deals, handling large transactions, and managing client relationships.

Research analysts, on the other hand, need to be effective at both verbal and written communication and have the ability to make balanced decisions based on rigorous analysis and due diligence. Successful research analysts and investment bankers generally have no shortage of external opportunities because of their experience, knowledge, and skills. Research analysts are likely to gravitate toward the buy-side i. Both investment banking and equity research are difficult areas to get into, but barriers to entry may be slightly lower for equity research.

While it is not uncommon to see a professional with some years of experience in a specific sector or area join a sell-side firm as an equity analyst or senior analyst, this seldom happens in investment banking. Although investment bankers and research analysts both have to steer clear of conflicts of interest , this is a bigger issue in equity research than in investment banking.

This was highlighted by the U. The 10 firms also had to agree to undertake a host of structural reforms designed to completely separate their research and investment banking arms. Both investment banking and equity research are well-paid professions, but over time, investment banking is a much more lucrative career choice. Investment bankers are famous for their high pay and large signing bonuses.

The reputation of a firm's research department may be a significant factor in swaying a company's decision when selecting an underwriter when it has to raise capital. But even though the investment firm may make a substantial amount through underwriting fees and commissions, research analysts are prohibited from being compensated directly or indirectly from investment banking revenues.

Instead, research analysts are compensated over and above their salaries from a bonus pool. These periodic bonuses are determined by a number of factors including trading activity based on the analysts' recommendations, the success of such recommendations, the profitability of the firm, and its capital markets division and buy-side rankings.

Overall, if one has to make a choice between embarking on a career in equity research versus one in investment banking, factors such as work-life balance , visibility, and barriers to entry favor equity research. On the other hand, factors like prospects for advancement, job functions, and compensation tilt the scales in favor of investment banking. Ultimately, however, the choice comes down to your own skillset, personality, education, and ability to manage work pressures and conflicts of interest.

Wall Street Oasis. Career Advice. Real Estate. Finance Interview Prep. Corporate Training. Technical Skills. View all Recent Articles. About Wall Street Prep. Inline Feedbacks. X Please check your email. X Flagship Program Comparison. X Phone. You are going to send email to.