What do investment banks actually do? - MoneyWeek Investment Tutorials

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  • เผยแพร่เมื่อ 8 มิ.ย. 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/

ความคิดเห็น • 419

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว +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 ปีที่แล้ว

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

    • @PoojaVkarma
      @PoojaVkarma 3 ปีที่แล้ว +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 ปีที่แล้ว +1

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

  • @sherillmiller4549
    @sherillmiller4549 4 ปีที่แล้ว +21

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

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว +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.

  • @yacineb5709
    @yacineb5709 7 ปีที่แล้ว +94

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

  • @andydidyouhear
    @andydidyouhear 12 ปีที่แล้ว +6

    One of the things that distinguish Tim’s videos from other educational videos on TH-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.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว

    sshhiillppaa - yes I have done videos on what is a swap, what is a future and what are options and covered warrants. They should come up in a search result on youtube. Happy viewing!

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 ปีที่แล้ว +2

    PS my 100 or so "trial" basics videos have been out for a while and seem to be popular despite the fact the similar content is available free in places such as Khan Academy, savingandinvesting and Motley Fool. So now my plan is to properly refresh my content and make the presentations better and much tighter. Plus I'll be adding all sorts of new and expanded stuff. What you are seeing here is just a taster for what I can really do. So keep an eye out for me and thanks for watching so far! Tim.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว +1

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

  • @joeblack1490
    @joeblack1490 2 ปีที่แล้ว +2

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

  • @JustnCas3
    @JustnCas3 8 ปีที่แล้ว +20

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

  • @Advert4HK
    @Advert4HK 12 ปีที่แล้ว +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 TH-cam.

  • @rksingh4965
    @rksingh4965 ปีที่แล้ว +1

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

  • @rupaalsingh4047
    @rupaalsingh4047 8 ปีที่แล้ว +12

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

  • @EconomicsAlex
    @EconomicsAlex 9 ปีที่แล้ว +13

    Your videos are so helpful!!

  • @vedantsharma7401
    @vedantsharma7401 8 ปีที่แล้ว +6

    Thank You for such a crystal clear explanation , Sir !

  • @yattaclub5
    @yattaclub5 10 ปีที่แล้ว +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 ปีที่แล้ว +1

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

  • @mattdathew2794
    @mattdathew2794 8 ปีที่แล้ว +17

    A very clear cut video

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 ปีที่แล้ว +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.

  • @ClassicStang
    @ClassicStang 5 ปีที่แล้ว +6

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

  • @greatbamba2022
    @greatbamba2022 7 ปีที่แล้ว +4

    Their explanations are very clear .Thanks

  • @carloscarmona6044
    @carloscarmona6044 11 ปีที่แล้ว

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

  • @shekharmodi
    @shekharmodi 3 ปีที่แล้ว +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!

  • @shardulnsiddhesh
    @shardulnsiddhesh 8 ปีที่แล้ว +2

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

  • @bobanyfingelf
    @bobanyfingelf 12 ปีที่แล้ว +1

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

  • @yejin5315
    @yejin5315 5 ปีที่แล้ว +1

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

  • @shikharchaudhary6984
    @shikharchaudhary6984 3 ปีที่แล้ว +1

    You are brilliant. Keep making these videos.

  • @Insectalrs
    @Insectalrs 10 ปีที่แล้ว +1

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

  • @Touhid
    @Touhid 12 ปีที่แล้ว +14

    Brilliant...You are Genious,,Indeed Sir

  • @sachinma3313
    @sachinma3313 9 ปีที่แล้ว +4

    Very nicely explained. Thank u !

  • @paulcaneda6627
    @paulcaneda6627 11 ปีที่แล้ว +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!

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 ปีที่แล้ว +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.

  • @penningtoncaptial8826
    @penningtoncaptial8826 8 ปีที่แล้ว +1

    Very nice description.

  • @TambouraBaptiste
    @TambouraBaptiste 4 ปีที่แล้ว +1

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

  • @GhostmanGus
    @GhostmanGus 11 ปีที่แล้ว +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 หลายเดือนก่อน

      سلام بعد یازده سال ایا تریدر شدی ؟

  • @MoneyWeekVideos
    @MoneyWeekVideos  10 ปีที่แล้ว

    That's all from me now on the moneyweekvideos channel but do feel free to keep in touch via Twitter @TimEditor

  • @markdfoti
    @markdfoti 12 ปีที่แล้ว

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

  • @kvijayasahithi3942
    @kvijayasahithi3942 6 ปีที่แล้ว +1

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

  • @mriamlful
    @mriamlful 10 ปีที่แล้ว +205

    lol investment banking is sexy

    • @hassanmohamed3272
      @hassanmohamed3272 9 ปีที่แล้ว +10

      How I find this very boring

    • @draculanova6548
      @draculanova6548 7 ปีที่แล้ว +1

      *?

    • @VimeosBetter
      @VimeosBetter 6 ปีที่แล้ว +16

      moneys not for everyone

    • @capitanlipoton7135
      @capitanlipoton7135 6 ปีที่แล้ว +2

      VimeosBetter high risk=high reward

    • @avaross.s2783
      @avaross.s2783 5 ปีที่แล้ว

      mriamlful that’s very stupid investment banking it is a very intelligent thing

  • @andrwleong
    @andrwleong 11 ปีที่แล้ว

    One of the best channels on youtube along with khan academy

  • @mana8592
    @mana8592 5 ปีที่แล้ว

    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.

  • @bhaskey7
    @bhaskey7 12 ปีที่แล้ว +1

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

  • @MariaGarcia-gv8hj
    @MariaGarcia-gv8hj ปีที่แล้ว +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 ปีที่แล้ว

      @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?

  • @qifanwu551
    @qifanwu551 8 ปีที่แล้ว +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 ปีที่แล้ว +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 ...)

  • @old263
    @old263 4 ปีที่แล้ว

    Love these classic videos

  • @CR00711
    @CR00711 3 ปีที่แล้ว

    Amazingly explained. Many Thanks !

  • @nowseemefly
    @nowseemefly 11 ปีที่แล้ว

    Thank you very much for the video! Very informative!

  • @windbreaker5364
    @windbreaker5364 5 ปีที่แล้ว +1

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

  • @kickflipindy78
    @kickflipindy78 8 ปีที่แล้ว +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 ปีที่แล้ว

      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 ปีที่แล้ว +6

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

    • @sjshivamjain
      @sjshivamjain 6 ปีที่แล้ว

      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 ปีที่แล้ว

      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.

  • @truthprevail3049
    @truthprevail3049 10 ปีที่แล้ว

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

  • @quamrulhasan2918
    @quamrulhasan2918 4 ปีที่แล้ว +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

  • @cburn455
    @cburn455 11 ปีที่แล้ว +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

  • @juliasharma1679
    @juliasharma1679 11 ปีที่แล้ว

    Thank you .This was informative !!

  • @RajKumar-tk7jm
    @RajKumar-tk7jm 8 ปีที่แล้ว +1

    Nice explanation . Thank you

  • @MilitaryBot
    @MilitaryBot 6 ปีที่แล้ว +2

    Just advised my friend to follow your channel videos are classy

  • @ThisIsMTH
    @ThisIsMTH 8 ปีที่แล้ว +2

    Excellent video, especially for a relative newcomer.
    Do many investment banks have business development teams to target companies to advise on M&As, or do companies approach the banks without any outreach?
    Thanks.

    • @David-ud9ju
      @David-ud9ju 5 ปีที่แล้ว

      The companies approach the investment bank. You can't go to a company and say "hey, we've been doing some research and we reckon you should try and merge with this company." They'd tell you to get the fuck out. If a company's thinking about merging with another company to raise their game, they'll approach an investment bank and ask them what they think, but not the other way around.

  • @chandanmiku
    @chandanmiku 9 ปีที่แล้ว

    love your vedios..u explain the best..

  • @mayare1919
    @mayare1919 5 ปีที่แล้ว +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.

  • @hunain9287
    @hunain9287 6 ปีที่แล้ว

    Best video you'd come across.

  • @usernameufo123
    @usernameufo123 11 ปีที่แล้ว

    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!

  • @ashwinidivate..1881
    @ashwinidivate..1881 8 ปีที่แล้ว

    thank u sir . u taught wid the ease

  • @FahadAlRajaan
    @FahadAlRajaan 6 ปีที่แล้ว

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

  • @nihalmelodies3800
    @nihalmelodies3800 5 ปีที่แล้ว

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

  • @thinkbigbrain
    @thinkbigbrain 12 ปีที่แล้ว

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

  • @Tutul900
    @Tutul900 12 ปีที่แล้ว

    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?

  • @LumovestCareers
    @LumovestCareers 2 ปีที่แล้ว

    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 ปีที่แล้ว

      But now they are into retail banking too.

  • @Carcaroff87
    @Carcaroff87 9 ปีที่แล้ว

    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)?

  • @Neeraj-NN
    @Neeraj-NN 5 ปีที่แล้ว

    Good one, clarity in all that is said

  • @MrMonkeyHawaii
    @MrMonkeyHawaii 6 ปีที่แล้ว

    Very clear thanks for good video

  • @MrLegendarier
    @MrLegendarier 9 ปีที่แล้ว +2

    Really good!

  • @kingpanda1
    @kingpanda1 7 ปีที่แล้ว

    Great video Tim thank you

  • @tafri961
    @tafri961 11 ปีที่แล้ว

    A Hearty Thanks for this valuable insight...

  • @binoyhalder5988
    @binoyhalder5988 6 ปีที่แล้ว +2

    How many day they work in a month

  • @How.Dare.You.
    @How.Dare.You. 12 ปีที่แล้ว

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

  • @emmanuelakoteyon2676
    @emmanuelakoteyon2676 5 ปีที่แล้ว

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

  • @winsenken
    @winsenken 10 ปีที่แล้ว

    Thanks! Very useful!!

  • @kizitodavid4457
    @kizitodavid4457 8 ปีที่แล้ว

    Thank you so much this is brilliant

  • @hier0phant336
    @hier0phant336 11 ปีที่แล้ว

    Thanks for this. Very informative.

  • @noogahay
    @noogahay 12 ปีที่แล้ว

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

  • @chethakmp3
    @chethakmp3 3 ปีที่แล้ว

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

  • @shukhov
    @shukhov 11 ปีที่แล้ว

    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

  • @dorniaki
    @dorniaki 12 ปีที่แล้ว

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

  • @doctora1110
    @doctora1110 4 ปีที่แล้ว +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.

  • @Bored-Panda
    @Bored-Panda 12 ปีที่แล้ว

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

  • @davidalen9279
    @davidalen9279 5 ปีที่แล้ว

    excellent. thank you sir.

  • @swpl1993
    @swpl1993 12 ปีที่แล้ว +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 :)

  • @shannenss
    @shannenss 12 ปีที่แล้ว

    thank you, I needed investment lesson :)

  • @iLukas93
    @iLukas93 12 ปีที่แล้ว +1

    keep up the good work!

  • @MrTop3selected
    @MrTop3selected 11 ปีที่แล้ว

    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

  • @MoneyWeekVideos
    @MoneyWeekVideos  11 ปีที่แล้ว

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

  • @vturner
    @vturner 9 ปีที่แล้ว +66

    I cant stop watching these type of videos and Im not even finishing my bachelor degree soon lol

  • @Teekayy23
    @Teekayy23 11 ปีที่แล้ว

    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 !

  • @vaibs4u2008
    @vaibs4u2008 10 ปีที่แล้ว +1

    Good tutorial, Thanks

  • @govindanvr7627
    @govindanvr7627 4 ปีที่แล้ว +1

    very useful to me thank you sir

  • @creamyiceful
    @creamyiceful 11 ปีที่แล้ว

    fantastic, very clear.

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว

    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.

  • @dstanev2004
    @dstanev2004 12 ปีที่แล้ว

    Quite useful video.. Thank you !

  • @tebbyiguisi2652
    @tebbyiguisi2652 8 ปีที่แล้ว +1

    Great video

  • @andydidyouhear
    @andydidyouhear 11 ปีที่แล้ว

    I'm just studying it. Cheers!

  • @MoneyWeekVideos
    @MoneyWeekVideos  12 ปีที่แล้ว

    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.