Investment Banking Internship Tips

The investment banking internship is a period where financial graduates receive a chance to learn about the job at a realistic and practical level. The position should also help you obtain a full-time job in the future. Investment banking is the method adopted by financial institutions in order to raise capital and offer advice for running a business. It uses various instruments likes stocks, bonds, structured products, options and much more in order to raise the desired capital.

Steps to Finding an Investment Banking Internship

As you search for an investment banking internship, you will need to follow these basic steps:

  • Search for and locate details about the various companies recruiting for an investment banking internship. Use their respective websites as a starting point for your research.
  • Contact placement agencies or investment clubs to determine other details.
  • Consult with the career placement professionals or with a career counselor to help in locating the list of firms that offer internships.

Selecting an Organization

You can decide about the organization by looking at factors such as these:

  • People you work with
  • Work culture
  • Your career goals
  • Your field of specialization.

Preparing for the Internship Interview

As you prepare for the interview, try to understand the organization as best you can from reading its website and mission statement. Also research their operations.

In addition to company-specific information, you should pay attention to current events in the investment banking sector. This knowledge keeps you up to speed in the industry. It may also come in handy if the interviewers want to assess your knowledge and involvement.

Interviewing for the Investment Banking Internship

On the actual day of the internship interview, you may benefit from following these tips:

  • Dress professionally to the interview (and every day in the office); act the same.
  • Carry the required credentials, transcripts, resume or cover letter in a nice, presentable folder.
  • Be punctual by reaching the interview venue about 15 minutes before the start time.
  • Greet cordially the panel of interviewers and give them a firm handshake, which indicates your confidence.
  • Avoid simply answering with yes or no. Instead explain yourself. Show your confidence and abilities in your answers with a positive countenance.
  • Ask questions about the responsibilities and the period of the investment banking internship. You can also ask questions regarding the team and intern’s responsibilities.
  • Thank the interviewer or the interviewers and inform them you look forward to hearing from them.

Practicing for Questions

Though you do not have experience in the field, the interviewers expect you to display decent knowledge about the industry by reading about the pertaining crucial changes in that business segment. Your answers should exude confidence and comprehension for them to select you for an investment banking internship. The competition is severe.

You can prepare for the interview by practicing answers to questions that may pop up. The examples below will help you craft some answers in advance.

  • General Questions
    • Why did you want to choose investment banking as a career?
    • Why have you chosen our organization?
    • What are your strength and weaknesses?
    • Which was your most challenging situation, and what was your reaction to it?
    • Explain an instance where you have applied your creativity.
    • Please inform us about a recent challenge or hardship you have encountered. How did you handle this situation?
  • Specific Investment Banking Questions and Concepts
    • What is a PE ratio?
    • Describe a recent merger or acquisition deal that interested you.
    • Tell us about an IPO and LBO.
    • How would you value a company?
    • What is investment banking?
    • What stocks do you follow?
    • How will you calculate the value of a bond?

You have no alternate solution but to rehearse for this interview and concentrate. You will have to work hard to achieve your goal and snag the investment banking internship you desire.