how does an invesment banker make money?

Investment bankers make money through a variety of means, including:

Underwriting: Investment bankers help companies raise money by issuing and selling securities. When a company issues new securities, it pays the investment bank a fee for underwriting the offering. This fee is typically a percentage of the total amount of securities sold.


M&A Advisory: Investment bankers also advise companies on mergers and acquisitions. They help identify potential acquisition targets, negotiate deals, and structure transactions. Investment bankers typically earn a fee for these services, which is usually a percentage of the total value of the deal.


Trading: Investment bankers also make money by trading securities. They buy and sell stocks, bonds, and other financial instruments on behalf of clients, and earn a profit on the transactions.


Capital raising: Investment bankers help companies raise capital through private placements, IPOs and debt offerings. They charge a fee for their services.


Bonus: Investment bankers also earn bonuses for their performance, which can be a significant part of their overall compensation. Bonuses are typically based on the profits generated by the investment bank and the individual's performance.

It is worth mentioning that the revenue generated by investment banks is highly dependent on the performance of the economy and the capital markets.