Difference between a Stock Broker and Investment Banker
Stock Brokers are those financial professionals who are well trained to gather data about stocks, mutual funds, pension plans and also other similar instruments. These professionals use the information they have collected to evaluate the potential of the financial instruments. They will locate the possible clients who may be interested in purchasing or else selling these instruments.
Investment banker is a professional who represents a financial organization that is in the business of raising its capital for various corporations and also municipalities. Investment bankers carry out a variety of roles, from advising clients on financial strategy to raising money for businesses. These professionals will specialize in any industry like energy, healthcare or else technology.
Stock Broker and Opportunities
Job responsibilities of a Stockbroker include the following:
- Building up investment plans based on the needs of a specific client
- Upholding records of the investments that each client makes
- Observing transactions related to a client’s investments
- Evaluating financial reports
A stockbroker should have a Bachelor’s degree in any specialization and also a registered representative license. Stockbrokers with a Master’s degree in Business Administration (MBA) will be preferred in reputed organizations.
Career opportunities for stockbrokers include:
- Banking sector
- Credit unions
- Investment units
- Door to door
A stockbroker will have to handle larger accounts at times. They can easily become a branch manager with sufficient experience in the field.
Investment Banker and Opportunities
Responsibilities of an Investment banker include:
- Researching market trends
- Deciding where to invest capital
- Work with businesses to help them with budgetary issues
Investment bankers usually take the role of a portfolio manager or a financier.
A Bachelor’s degree in Business Administration or a related stream like finance is mostly required to become an investment banker. Reputed firms usually employ aspirants with a Master’s degree.
These professionals are mostly engaged in Banks, Financial units etc.
Key difference between a Stock Broker and Investment Banker
- Stockbrokers are those financial professionals who are well trained to gather data about stocks, bonds, mutual funds, pension plans and also other similar financial instruments.
- Investment banker is a professional who represents a financial organization that is in the business of raising its capital for various corporations and also municipalities
Although a Bachelor’s degree or a Master’s degree related to finance is required for both these professionals, their job profiles will be different. Remuneration will also be different for a Stock Broker and an Investment Banker.
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