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Investment Banking Interview Questions
One of the most challenging jobs in the field of banking is that of an investment banker. The questions asked by the interviewer are comparatively to the point than the questions asked in any other job interview, because an investment banker has to deal with huge numbers each day. One small mistake can lead to great losses, not only for the customer but also for the bank. Following are some sample questions that will give you an idea about the types of questions you might encounter in your interview, and how you must face them.
Question 1: What are your qualifications?
Answer: This is one of the most typical questions asked by the interviewers. Here you must mention your grades that you have secured in the high school, graduation, and post graduation, and in any other specialization courses. It is at this time, that the name of your college, university or educational institute matters. Try to mention the qualifications and the qualities which are in close relation with the profile at the start and then add others later in the list. Do not give any false or misleading information in the answer because it will create trouble for you sooner or later.
Question 2: Why do you want to pursue this career?
Answer: This is one of the most common interview questions that the majority of job seekers have to come across in their job interview all over the world. Therefore, prepare a very good answer for this question so that you can convey the reason for choosing this career in a better way as compared to the other competing candidates. This is the best way of answering this question. Give genuine reasons for opting this field and this profile conveying your interest in it. Tell the interviewers how you will assist people in fulfilling their dreams and ambitions by identifying investment plans that are best suited for them.
Question 3: What are your goals as an investment banker in the long run?
Answer: These types of questions are asked by the interviewers to gauge your level of interest in the job as a career, and how interested you are in working with the company or the bank in the long run. Since the job of an investment banker demands high level of responsibility, it is very essential for the bank to evaluate the candidate on such grounds. Therefore, be very careful with your words while answering such types of interview questions.
Question 4: Why did you choose our bank fro the job?
Answer: This is another tricky question tossed by the interviewers in the interview session. This question is asked in order to find out whether you have researched about the firm or the bank before applying for the job or before appearing for the interview. Those who have researched about the employer and done their homework thoroughly can come up with an excellent answer to such questions. Thus, it is advisable to research before you appear for the interview.
Question 5: What are the most important qualities required for a making a successful career in investment banking?
Answer: This is also one of the most important and most common questions that appears in the set of interview questions. Here you must reiterate all those points that are a must for becoming an investment banker. The answer to this question must include qualities such as your ability to crunch numbers, manage complicated calculations, the ability to keep yourself updated with the current market scenario, strategic handling of finances, which will benefit both, the customer and the bank and so on. It must also state your aim behind choosing this career .
Question 6: When the stock market was not doing well, how did you handle the reactions of your clients?
Answer: Since you are looking forward to a career in the field of finance, you will have to face these types of situations quite often. By asking such questions, the employer or the interviewer expects you to explain what steps you executed in order to handle clients and what was your plan of action so as to guide them through the same as well as how to recover the losses. If you fail to give an example then the answer will not be very effective.
Question 7: How do you secure your investments?
Answer: These questions are asked by the interviewer when they are satisfied and assured of your technical knowledge and now they are interested in your other qualities such as how do you keep your work organized from time to time, how you plan your work to improve profits and what are your investment plans. Investing some part in upcoming companies and organizations and some part in the government sectors is a great answer to impress the interviewer. Hence, it is advisable to study the pros and cons of the business thoroughly beforehand, so that you can come up with excellent answers in the interview.
Question 8: What according to you is the best way to work for investment bankers?
Answer: The answers to these types of interview questions are very equivocal. Here you need to answer in a such a way that it reflects to the interviewer your awareness about the ins and outs of investment market. You must also state your roles and responsibilities from the point of view of an investment banker for both the organization and its clients.
Question 9: Which company's stock do you like the most and why?
Answer: By asking this question, the interviewer is trying to assess your areas of interest in the market. This will give them an insight into whether you will prove to be asset for the bank or not. Thus, research well about the market before appearing for the interview so that you do not end up with some weird answers and lose your chances of employment.
Question 10: What is meant by underwriting?
Answer: Here you need to give a detailed description stating the definition of underwriting and why is it essential. The best answer to this question is as follows: the process by which the investment bankers raise funds from the investors in terms of security for the government is termed as underwriting. Many banks are involved in the process, with one of the banks taking the lead in the process. This group of banks which is termed as 'syndicate' is responsible for writing the transaction and handling the distribution of securities.
If you start your answer in this way, and then go on adding as per the requirement of the interviewer, it will leave a positive and indelible mark on them and elevate your chances of employment.
These were some of the common questions that you might face in the interview. However, the interviewer can come up with some other types of questions as well. So prepare well by keeping all the relevant aspects in your mind. Good Luck!!!.
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