What do investment banks actually do? - MoneyWeek Investment Tutorials

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  • Опубліковано 22 тра 2024
  • MoneyWeek’s Tim Bennett explains what investment banks actually do- and how they earn their huge profits.
    MoneyWeek videos are made by MoneyWeek, the UK’s most popular financial magazine. Founded in 2000, MoneyWeek aims to provide intelligent and enjoyable commentary on the most important financial stories. It also tells you how to make money from the latest financial news.
    For more videos and exclusive content please visit moneyweek.com/video-tutorial/

КОМЕНТАРІ • 419

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому +214

    A few people have asked what I did before making these videos. Ok I admit it, I have taught graduates and upwards at the likes of Goldman Sachs and JP Morgan for over ten years as well as a range of students from the big accountancy firms such as PriceWaterhouseCoopers. These days I work in financial journalism. I thought I would post these videos in the hope they help a few people out - I always found pure academic teaching very dry so hopefully these videos liven the topics up a bit. Tim.

  • @sherillmiller4549
    @sherillmiller4549 4 роки тому +21

    Well Said! Investments Banking
    1.) " Prop Trading"
    2.) " Market & Making "
    3.) " M & A Advisory "
    4.) " Corporate & Events Issues /Underwriting
    5.) " Structured Products"

  • @yacineb5709
    @yacineb5709 7 років тому +94

    can you do a video explaining the different areas in investment banks, e.g.market, investment banking, asset management, risk, operations etc.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому +74

    Thanks for watching these videos - whoever you are! My next plan is to create a financial education site to help novices, students and anyone else who is baffled by the world of finance. If you think this would be useful please tick here. I also welcome any ideas on the topic coverage....Thanks Tim.

    • @achinsingh9336
      @achinsingh9336 4 роки тому

      MoneyWeek Yes it would be brilliant if you did that, please guide us with your expertise .

    • @PoojaVkarma
      @PoojaVkarma 3 роки тому +1

      I learn more from your videos than I do from my college course. Kudos to you. Thank you for bringing such quality content with this level of simplicity. Simply the best. Best wishes! 💐

    • @shikharchaudhary6984
      @shikharchaudhary6984 3 роки тому +1

      Please make more videos. Your videos are amazing. Thanks a million.

  • @andydidyouhear
    @andydidyouhear 12 років тому +6

    One of the things that distinguish Tim’s videos from other educational videos on UA-cam is his charisma. For instance, the guy from Khan Academy teaches interesting stuff but he may be a bit boring sometimes. Tim is never boring. Also, his English is excellent. Keep it up, I’m your biggest fan.

  • @Advert4HK
    @Advert4HK 11 років тому +1

    Tim, you have your way in explaining things in such "an easy to understand" and "precise manner". One of the best video site in UA-cam.

  • @joeblack1490
    @joeblack1490 2 роки тому +2

    This content is gold. I'm actually trying to prepare for a UBS interview and your channel brought me up to speed.

  • @vedantsharma7401
    @vedantsharma7401 8 років тому +6

    Thank You for such a crystal clear explanation , Sir !

  • @EconomicsAlex
    @EconomicsAlex 9 років тому +13

    Your videos are so helpful!!

  • @rupaalsingh4047
    @rupaalsingh4047 7 років тому +12

    Hi Tim, could you please do a video/tutorial on multi-tiered securitization, concept, strengths/weaknesses etc. . Thanks.

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 років тому +3

    Hi. A good place to start would be my "bond basics" videos - there are two and my "beginner's guide to investing: the financial markets". Hope that helps. Tim.

  • @ClassicStang
    @ClassicStang 5 років тому +6

    Excellent Presentation. Wish I would have had professors like you.

  • @paulcaneda6627
    @paulcaneda6627 11 років тому +1

    Thanks Tim. My current job now requires for me to learn a lot about financials, specifically on investing. All your videos are VERY helpful and I actually learned more from it than from the materials from a course that I'm into right now. More power to you!

  • @yattaclub5
    @yattaclub5 10 років тому +59

    Hey Tim, My cat Nerina loves your videos :) She tries to touch you with a paw when she's watching you….:)

  • @idsjesus73
    @idsjesus73 11 років тому +1

    Easy to see that the presenter has taught before for many years. Very clear, concise and easy to understand. Many thanks for this.

  • @bobanyfingelf
    @bobanyfingelf 11 років тому +1

    Hi Tim,
    I find your presentation style easy to follow & the content most informative. thank you.

  • @shardulnsiddhesh
    @shardulnsiddhesh 8 років тому +2

    Thank you so much! I like your videos very much. Just subscribed!

  • @greatbamba2022
    @greatbamba2022 7 років тому +4

    Their explanations are very clear .Thanks

  • @mattdathew2794
    @mattdathew2794 7 років тому +17

    A very clear cut video

  • @yejin5315
    @yejin5315 5 років тому +1

    I like how to explain it with a lot of examples. Making it more clear to understand. Thank you.

  • @Insectalrs
    @Insectalrs 10 років тому +1

    great vids, i just found you, i got a lot of vids to go through, very informative thanks!

  • @JustnCas3
    @JustnCas3 8 років тому +20

    I spaced out through my degree in business. Spacing out is fun.

  • @rksingh4965
    @rksingh4965 Рік тому +1

    I always come to this channel before my interview to get best definition of Investment bank..😃😃😃😃

  • @markdfoti
    @markdfoti 12 років тому

    awesome video, good stuff. your amazing at explaining and really breaking it all down for anyone to be able to understand.

  • @shekharmodi
    @shekharmodi 3 роки тому +1

    Nice video sir! Love the fact that you used whiteboard instead of graphic animations! Although, traditional that's the best way of teaching! Have a nice day!

  • @cburn455
    @cburn455 11 років тому +1

    Excellent presentation I have sat through many lectures where my professor explained this topic and I never fully understood it. I have an exam tomorrow in Financial Services and more than likely there is going to be a question on Investment banking literally cut out a few hours of studying for me.... Thanks from Ireland

  • @mana8592
    @mana8592 5 років тому

    Thank you very much for this information, I have been asked to prepare a presentation on what investment banks do, and I have stumbled on your video which sounds very helpful. Thank you very much for this.

  • @TambouraBaptiste
    @TambouraBaptiste 4 роки тому +1

    Absolutely brilliant. I am now more informed. Thank you so much.

  • @thinkbigbrain
    @thinkbigbrain 12 років тому

    Very good and clear presentation. Please consider a follow up with more indepth information. Also another on the asset management industry

  • @bhaskey7
    @bhaskey7 12 років тому +1

    Thanks mate. Superb one. Your examples were so simple that a layman like me could understand easily.

  • @kvijayasahithi3942
    @kvijayasahithi3942 6 років тому +1

    Very useful video to get a basic knowledge on investment banking. Thank you for the video sir

  • @sachinma3313
    @sachinma3313 9 років тому +4

    Very nicely explained. Thank u !

  • @shukhov
    @shukhov 11 років тому

    thank you, this is the introduction I've been looking for.. I liked it.
    however some criticism, just what came up to me as I watched it:
    1. It seems sometimes you are leaning against the board.
    2. You are repeating yourself, rephrasing what you have already said. Therefore things sometimes lack clarity.
    3. When you show the division between retail and investment banking, you are already talking about the huge margins/profits they make in the investment banking, without explaining it later

  • @penningtoncaptial8826
    @penningtoncaptial8826 8 років тому +1

    Very nice description.

  • @quamrulhasan2918
    @quamrulhasan2918 4 роки тому +1

    very straight and clear,I always thought banks are banks what is retail and what is investment ,thanks for all in a nutshell.is there any video on share market how it works and why it dives hard

  • @carloscarmona6044
    @carloscarmona6044 11 років тому

    Sir, thank you for this video. Got really interested in these themes, is there an specific carrer fot this and alike themes?

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому +1

    Anyone who likes my videos should note there are 30 more (on price earnings ratios, QE etc) in the Moneycontent channel. Thanks Tim.

  • @MariaGarcia-gv8hj
    @MariaGarcia-gv8hj Рік тому +27

    *When it comes to investing, I'm so ignorant about it, I hereby ask; What's your say or thought for anyone with over $20k looking for the best ways to make good returns off it? I will appreciate any help here on how to do this*

    • @MariaGarcia-gv8hj
      @MariaGarcia-gv8hj Рік тому

      @Lucy Bernardi Interesting, I've always been fascinated with investing and I need to start now. Could you possibly give more information on your Investment Professional and how I can reach out to her?

  • @GhostmanGus
    @GhostmanGus 11 років тому +6

    Tim your a legend! you've made all of this so understandable to me, relating it with examples and with such charisma! I have to meet a few people soon working with my brother in an investment bank as I'm trying to get myself too into investment banking, sometimes I feel like its all abit too above my league as this topic just branches further and further into more complex stuff, im going to watch all your video's while taking notes, any advice to me would be appreciated, thanks anyways tim! :)

    • @sirius8328
      @sirius8328 Місяць тому

      سلام بعد یازده سال ایا تریدر شدی ؟

  • @mayare1919
    @mayare1919 5 років тому +6

    I know it's semantics and industry argot, but I'd re-label 'corporate events' as 'financing'/'corporate finance (advisory)' where the latter is the industry norm. Corporate events sounds like an office Christmas party.

  • @usernameufo123
    @usernameufo123 11 років тому

    Hi Tim,
    What do you suggest me doing to "follow" the market? What are some knowledge that I need to know (S&P, bonds....ect)?
    Thanks a lot for the help and video!

  • @Touhid
    @Touhid 12 років тому +14

    Brilliant...You are Genious,,Indeed Sir

  • @aravinrao705
    @aravinrao705 10 років тому

    Hello Sir, Excellent clarity and presentation of different products. Good stuff really. Appreciate your knowledgesharing thing. The only missing thing I find is organising the videos -you have almost 140 videos...if you can categorize/organize and give a numbering of which one is starting and ending video or what comes first and next would be a great info to know instead of getting lost in browsing. Example of site I would say is - Khanacadhemy

  • @ASPEDBUSDRIVER1
    @ASPEDBUSDRIVER1 4 роки тому +2

    Fast fwd to 3:13. You're welcome

  • @andrwleong
    @andrwleong 11 років тому

    One of the best channels on youtube along with khan academy

  • @chandanmiku
    @chandanmiku 9 років тому

    love your vedios..u explain the best..

  • @nowseemefly
    @nowseemefly 11 років тому

    Thank you very much for the video! Very informative!

  • @RajKumar-tk7jm
    @RajKumar-tk7jm 8 років тому +1

    Nice explanation . Thank you

  • @MilitaryBot
    @MilitaryBot 6 років тому +2

    Just advised my friend to follow your channel videos are classy

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 років тому +3

    I was asked the other day what "Zombie Banks" are so there's a video out that's titled "what are Zombie Banks?". Hope that answers the question for the folk that asked.
    If you post a request for a video I will do my best to produce one however as it's just me working on this you may have to wait a while for me to get around to it! Cheers Tim.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому

    Good question. Conflicts of interest are supposed to be managed by the banks but the regulation in this area is, to put it mildly, woolly.

  • @truthprevail3049
    @truthprevail3049 10 років тому

    Very good videos precise and to the point. Thank you Sir!

  • @CR00711
    @CR00711 3 роки тому

    Amazingly explained. Many Thanks !

  • @Tutul900
    @Tutul900 12 років тому

    thanks tim, your videos are the best, got an interview in an investment bank next month for summer internship here in australia, got any tips for me?

  • @juliasharma1679
    @juliasharma1679 11 років тому

    Thank you .This was informative !!

  • @ashwinidivate..1881
    @ashwinidivate..1881 8 років тому

    thank u sir . u taught wid the ease

  • @dorniaki
    @dorniaki 12 років тому

    i would be interested in a video about how to value a company. thank you, and good video

  • @swpl1993
    @swpl1993 12 років тому +2

    wow. thank youu for making this video.
    i just finished high school and i'm still unsure of what undegraduate course i'll choose. having an insight of investment banking was helpful :)

  • @old263
    @old263 3 роки тому

    Love these classic videos

  • @FahadAlRajaan
    @FahadAlRajaan 6 років тому

    This will help people decide if they really want to go into investment banking

  • @chethakmp3
    @chethakmp3 3 роки тому

    This is a very nice video, sir, thanks, it's easy to understand

  • @jasonli7579
    @jasonli7579 11 років тому

    Hi Tim,
    That is great news! I hope that you are open to discussion topics, because there are tons of stuff that me and my frds are dying to know.

  • @hier0phant336
    @hier0phant336 11 років тому

    Thanks for this. Very informative.

  • @How.Dare.You.
    @How.Dare.You. 12 років тому

    omg youre awesome!!!!! please keep making videos!!!!

  • @tafri961
    @tafri961 11 років тому

    A Hearty Thanks for this valuable insight...

  • @Bored-Panda
    @Bored-Panda 12 років тому

    Hi, i want to learn about different types of oil trading (options, swaps, forward) . Can you provide tutorials on that as well?

  • @MrLegendarier
    @MrLegendarier 9 років тому +2

    Really good!

  • @kingpanda1
    @kingpanda1 7 років тому

    Great video Tim thank you

  • @LumovestCareers
    @LumovestCareers 2 роки тому

    It's amazing how this video withstands the test of time. The investment banks today still do exactly what this video described from 10 years ago:
    1) Proprietary Trading
    2) Market Making
    3) M&A Advisory
    4) Debt & Equity Financing
    5) Structured Products

    • @tube.brasil
      @tube.brasil 11 місяців тому

      But now they are into retail banking too.

  • @Carcaroff87
    @Carcaroff87 9 років тому

    Hi, i currently have to finish an exam and it requires to study a group of firms. It was assigned to me Tokai Tokio financial holdings, inc. , and, in a previous exam, i had to examine an industrial reality...so my question is: are investment banks such the one i reported before "easy" to be studied or i should request another society (with the risk of getting a retail bank, which i want to avoid)?

  • @SuperMima1993
    @SuperMima1993 12 років тому

    excellenttt video.... thanks alot

  • @kizitodavid4457
    @kizitodavid4457 8 років тому

    Thank you so much this is brilliant

  • @noogahay
    @noogahay 12 років тому

    You are the best discovery that just happened to me!!!!

  • @Teekayy23
    @Teekayy23 11 років тому

    I am not sure if you have answered this already but what would the job description of an investment banker be and what other careers are in investment banking . Thank you !

  • @kickflipindy78
    @kickflipindy78 8 років тому +29

    Big fan of your videos. I slightly disagree with your comments about how Prop trading is 'gambling' or betting. In gambling (ie flip of the coin) you have win or loose, there is no growth or value. Buying/selling securities that are over/undervalued can create value. Secondly with the correct use of risk management (derivatives) allows you to minimize your downside risk but maximize the upside. Which, of course, does not exist in gambling (in a simple coin flip example).

    • @joepeeler34
      @joepeeler34 7 років тому

      Your position is accurate if there is honest price discovery in commodity markets, bond markets and equity markets. That's just not the case at present. Everything is rigged due to central bank coordination of interest rate suppression.
      There is definitely price suppression of gold and silver by the primary bond dealers around the world. Deutsche Bank was recently found guilty in U.S. District Court, Southern District of New York (Manhattan) of silver price rigging.
      What is even more interesting is that Deutsche Bank threatened to expose other primary bond deals involved in the rigging if they didn't come forward.

    • @jefthabisschop238
      @jefthabisschop238 7 років тому +6

      Bob K gambling isnt just flipping a coin. Look at Poker, blackjack etc.

    • @sjshivamjain
      @sjshivamjain 6 років тому

      Derivatives you are talking about... You have only talked about options... Where there is upside or downside gains but in forward nd future it's almost gambling

    • @David-ud9ju
      @David-ud9ju 5 років тому

      In trading, you are betting that something will increase in value or decrease in value - it's gambling. Sure, it's more precise than betting on the horses, but it's still gambling.

  • @MrTop3selected
    @MrTop3selected 11 років тому

    Hi Tim your videos are great. I want to start a peer-to-peer lender but I'm not sure exactly what I need to do, especially in terms of regulation because I heard its not FSA regulated and a consumer credit licence from the OFT is not compulsory. Can you give me some advice and guidance please Tim. Thanks

  • @nihalmelodies3800
    @nihalmelodies3800 5 років тому

    what is the difference between the second (market making) and the forth (underwriting securities) function? seem the same to me. An answer pleaase

  • @govindanvr7627
    @govindanvr7627 4 роки тому +1

    very useful to me thank you sir

  • @jabhatta
    @jabhatta 11 років тому

    i agree fully - Tim's charisma and accenture is great ..i am a big fan. Just out of curiosity - do you teach finance at a university ?

  • @Neeraj-NN
    @Neeraj-NN 5 років тому

    Good one, clarity in all that is said

  • @dstanev2004
    @dstanev2004 12 років тому

    Quite useful video.. Thank you !

  • @windbreaker5364
    @windbreaker5364 5 років тому +1

    Did Not understand structured products could someone explain and btw what’s the fuzzy ^^

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому

    L9PoloPa - I agree. My video is just an introductory guide so I have used some pretty broad headings. Different banks group activities under different headings in practice. Structured products are a good example of an asset management solution but I agree there are others. Tim.

  • @nashty1332magic
    @nashty1332magic 11 років тому

    At the risk of sounding completely clueless (which may or may not be the case), around 8:10 you said that a company may issue shares or bonds depending on whether they wish to "issue debt or equity". What exactly does it mean to issue debt, I'm a bit confused by the term. I'd be glad for any help :)

  • @hunain9287
    @hunain9287 6 років тому

    Best video you'd come across.

  • @shikharchaudhary6984
    @shikharchaudhary6984 3 роки тому +1

    You are brilliant. Keep making these videos.

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 років тому

    Hi. Thanks - and no! All my teaching has been done working for commercial training companies. These days I work in financial journalism. Cheers Tim.

  • @emmanuelakoteyon2676
    @emmanuelakoteyon2676 5 років тому

    Waoh. I'm glad i came across this. Thank you.

  • @iLukas93
    @iLukas93 12 років тому +1

    keep up the good work!

  • @tebbyiguisi2652
    @tebbyiguisi2652 8 років тому +1

    Great video

  • @winsenken
    @winsenken 10 років тому

    Thanks! Very useful!!

  • @MrMonkeyHawaii
    @MrMonkeyHawaii 6 років тому

    Very clear thanks for good video

  • @davidalen9279
    @davidalen9279 4 роки тому

    excellent. thank you sir.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 років тому

    Hi. Yeah - firm handshake, look them in the eyes, do your homework on both what banks do and why you'd be good at it. In short come across as well rounded, articulate, bright and high energy and you should be ok! Smiling also helps - not something I ever mastered :)

    • @anthonygato407
      @anthonygato407 3 роки тому

      Be late, wear Crocs with a T-shirt that says in big letters "F*CK OFF", dont say hi to anyone, be unprofessional, then show them how profitable your results are. If you dont get a call back, its a Ponzi operation.

  • @doctora1110
    @doctora1110 4 роки тому +2

    Hey Tim could you please walk us through the process of investment bank and big firm like goldman sachs how do they exactly operate and give us some sense of how they may operate in real life situations
    thanks.

  • @mriamlful
    @mriamlful 10 років тому +205

    lol investment banking is sexy

  • @qifanwu551
    @qifanwu551 8 років тому +4

    Thanks for the informative video? Could you tell me the difference between a mutual fund/hedge fund and first responsibility of an investment bank? They seem same to me?

    • @montinuino6882
      @montinuino6882 8 років тому +2

      +Qifan Wu you go to a Hedge Fund when you want to hedge your risks, related to interest rate fluctuations ... and you go to a mutual fund when you want to invest money in an already diversified portfolio (equity or bonds) and also in a special niche market (oil, gas ...)

  • @Dormano_Wild_Rift
    @Dormano_Wild_Rift 11 років тому

    Have you been doing some videos about index, like S&P 500, bounds etc. would be very interesting.

  • @Meo0403
    @Meo0403 11 років тому

    it would be great if you could please upload some videos to educate us on technical analysis

  • @creamyiceful
    @creamyiceful 11 років тому

    fantastic, very clear.