Economic of Employment Essay Example | Topics and Well Written Essays - 3000 words

Economic of Employment - Essay Example Investment banking services include commodity trading, equity trading which are the shares of companies and finally futures and option trading. These are just some of the services they offer in the market and their main difference with the commercial banks is that they do not accept deposits by the clients as savings and also those they don't offer loans. The roles played by the investment banks in the market clearly indicates the type of activities in the bank, employment into an investment bank is usually very competitive and this is because the rewards and high plus other benefits, the firms also offer various personal development programs which enable workers to personally advance in the future. This paper discusses the various daily activities that are present in an investment bank, training programs in the investment bank, and requirements for one to be recruited into the industry, compensation and reward system and finally the problems faced by the investment banks. An investment ban can be defined as a form of bank acts as an intermediary between investors and capital companies and firms, their main purpose is to provide capital requirements of companies and firms in the market, for this reason they will trade in stocks and bonds, they will also undertake structuring and evaluations on mergers and acquisitions, below are the major functions of investment banks: Function: a. Advisory services: An investment bank will offer advice to clients regarding the various investments and business planning, advice will also be offered on strategic planning and financial restructuring in order to achieve a fair proposed transaction, this service is important in the market because most investors and business are not aware of risks involved and also potential profits in the market. These services are offered by those employed and for this reason we can conclude that an individual may be chosen to undertake advisory services in the organization, this services requires good communication skills and also a wide knowledge of the market regarding the various risks and profitability of these options. b. Trading and sales of stocks and option: An investment bank will sell and trade in stocks and new offering in the market, this service is offered to clients who wish to hold securities by buying or selling these securities to them, this process involves the calculation of risk involved in holding stocks sold to them by clients and communicating this information to the clients regarding what they will offer for the stocks. This process requires the hedge of risks of holding such options and also information on the prevailing prices in the market. This service therefore requires that an individual interested in joining the investment bank as an employee must be good in mathematics and also must have the ability to undertake accurate predictions regarding prices in the market in order to avoid losses that may be occurred due to improper decision making, for this reason therefore the recruitment process is very competitive and only the academically qualified applicants are considered. c. Capital