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Investment Banking Explained in 5 minutes



What is investment banking? How do they make money? What are the best investment banks? What are the investment banking divisions? What is a typical investment banking salary?

In this “Investment Banking explained in 5 minutes” video, I answer all these questions and more.

Using Goldman Sachs’ annual report as an example, I explain the front office divisions and how much they generate. Then, I discuss the investment banking division in more detail, explaining both the advisory and the financing side. Lastly, I explain the skills required for the job, the expected compensation, the work hours, and the likelihood of breaking into investment banking.

Resources used:
GS Annual Report: https://www.goldmansachs.com/investor-relations/financials/
IB profits: https://www.bloomberg.com/news/articles/2021-08-03/global-banks-170-billion-haul-marks-most-profitable-year-ever
IPO fees: https://www.pwc.com/us/en/services/deals/library/cost-of-an-ipo.html

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Chapters:
0:00​ -​ Intro
1:46​ – How they make money
3:10 – Types of Investment Banks
3:58​ – Career in Investment Banking

Disclaimer: I may receive a small commission on some of the links provided at no extra cost to you.

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Comments (39)

If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.

I'm interested in investing, but I'm not sure where to start. Do you have any advice or contacts who can help me out?

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains within months, I'm really just confused at this point.

VOO is better diversified, while SCHD has more holdings concentration risk. i would think a blend of both based on one's personal situation is essential . in terms of profits, VOO has offered me more ROI as it is 22.25% up . i have $250k which i am looking to invest in covered call ETFS for dividend. Here for ideas

Any IB here? Did you go to a top-tier school? How hard it was to land a job?

Can I get into Ib if I’m not from a target school

I have been considering this career and this video is super informative and easy to keep up with! Thank you. Can you please make a 5 minute video explaining the career route to take in the meantime while I’m still finishing college? I wanted to get an entry level bank position just to have it on my resume so when I finish college I have some bank experience

I work as an investment banker even though I do this for a living. I don't advice it I invest for myself also

Hello my dear friend! thank you for the cool video! keep filming! I'll wait for new videos

Very nice video, continue posting !

Very good video but im scared of the hours per week… i have to work like 15+ hours a day to get 80 hrs/week if i work 5 out of 7 days

Does your course teaches you which sectors or industry to analyze that will move first in the market also

Where did you work after college? Tks

This one is really helpful but can you make a elaborate video on this concept

Could I work in an investment bank at the age of 14? I really have a big passion with business and a lot of education about finance. I even predicted the crash of Bitcoin and the rise of a solar company, but my dad didn't allow me to short sell Bitcoin and to invest in the solar company so I lost the opportunity πŸ˜‚.

Can you make a video detailing the Mergers & Acquisition role?

I thought investment banks purchase the stock from a company and then sell it at a higher price to investors?

Would t Rowe price comsidered boutique?

$100,000 a year. 80hr work weeks. 52weeks in a year. $100,000 divided by 4160 hrs worked = $24/hr GROSS. That's all for being the best?

no one talks about it but investment banks get a commission for every IPO or M&A…like 7% of $7 billion is a $490 million commission for the investment bank so that's why they're always pushing to get an IPO or M&A done

Can you take us through the course you did and completed

Can you make a video of the skills but in more detail 5:03

Very well made and informative video. Thank you, Kenji!

Where can I find recent M&A deal ?

I HAVE BEEN MAKING LOSSES TRADING MYSELF…I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?

Subscribed. Amazing content.

Hi, What did you study?. I'm studying mechanical engineering but I want to be an investor or CEO. Β‘Thank you for the information and cheers from Colombia!.

Nice content! Trading used to be a bit hard, especially with lots of fake experts and scammers, making profits on crypto coins or the forex market was almost impossible for me until I met the guru trader, Ms. Maureen and her skill is exceptional.

Fantastic explanation! Interesting and informative πŸ’ͺ🏽

Really clear explanation! Thanks Kenji

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