What do investment banks actually do? - MoneyWeek Investment Tutorials

[@MoneyWeekVideos]

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]

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

[@PoojaVkarma]

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]

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

[@sherillmiller4549]

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

[@MoneyWeekVideos]

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.

[@quamrulhasan2918]

a very helpfull way for non accounting people

[@trader96.]

You're the best Tim.

[@lumiere2598]

Thank you a lot Tim

[@tarangsarawgi7224]

Thanks

[@barb4645]

Thanks

[@yacineb5709]

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

[@MariaGarcia-gv8hj]

*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]

@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?

[@andydidyouhear]

One of the things that distinguish Tim’s videos from other educational videos on KZbin 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]

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

[@joeblack1490]

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

[@JustnCas3]

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

[@Advert4HK]

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

[@susanrobinson9670]

| CAME HERE TO LEARN HOW TO INVEST AFTER LISTENING TO A GUY ON RADIO TALK ABOUT THE IMPORTANCE OF INVESTING AND HOW HE MADE $460,000 IN 4 MONTHS FROM $160k, SOMEHOW THIS VIDEO HAS HELPED SHED LIGHT ON SOME THINGS, BUT I'M STILL CONFUSED, I'M A NEWBIE AND I'M OPEN TO IDEAS...

[@rolandmeyer1374]

Investing in stocks or crypto is a good idea, a good trading system would put you through many days of success.

[@carlosrobertovega8200]

Most people are scared because of the chance of loss incurred while trading

[@gemmahefford5542]

I'm thinking of investing in the crypto market, but I'm taking my time to understand how it really works

[@laurenpelletier5379]

It is possible to produce superior performance provided you do something different from the majority. However most of us tend to pay more attention to the shiniest position in the market to the cost of proper diversification.

[@williammortensen8588]

@@laurenpelletier5379 Exactly, the trick is to diversify your investment, don't panic when everyone else is and invest consistently.

[@idsjesus73]

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

[@rupaalsingh4047]

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

[@kickflipindy78]

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]

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]

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

[@sjshivamjain]

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]

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.

[@shekharmodi]

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!

[@rksingh4965]

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

[@mattdathew2794]

A very clear cut video

[@quamrulhasan2918]

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

[@Touhid]

Brilliant...You are Genious,,Indeed Sir

[@FIRSTLAST-fj9qs]

*genius

[@MoneyWeekVideos]

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]

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

[@vedantsharma7401]

Thank You for such a crystal clear explanation , Sir !

[@GhostmanGus]

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]

سلام بعد یازده سال ایا تریدر شدی ؟

[@yattaclub5]

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

[@greatbamba2022]

Their explanations are very clear .Thanks

[@yejin5315]

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

[@paulcaneda6627]

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!

[@bobanyfingelf]

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

[@shikharchaudhary6984]

You are brilliant. Keep making these videos.

[@TambouraBaptiste]

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

[@LumovestCareers]

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]

But now they are into retail banking too.

[@ASPEDBUSDRIVER1]

Fast fwd to 3:13. You're welcome

[@doctora1110]

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.

[@EconomicsAlex]

Your videos are so helpful!!

[@kvijayasahithi3942]

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

[@MoneyWeekVideos]

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.

[@shardulnsiddhesh]

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

[@x1anarchy]

Good Video..I however disagree with his comparison of Prop Trading to Gambling. Roullette is Gampling because the odds are always against you. Prop trading is speculation. In speculation you should have a system with an edge that has a positive expectancy on the long run. This differs significantly from gambling...otherwise another great money week video...

[@refentseazania5550]

Shalton Sille the moment you say expectancy you are talking about statistics which is just a fancy way of saying gambling 🤷🏿‍♀️.

[@ciaranmurphy9513]

Jura Pas it's all about probabilities - speculation is a gamble

[@rossolinger4477]

wow that's not true either. statistics is a school of thought in mathematics that measures sample sets of data. They are two completely different things. not even close.

[@rossolinger4477]

contrary to what others might think, it's actually just business. They aren't related at all. I agree with you Shalton. They are two completely different things and many people look at it the wrong way. Let them. More profit for you

[@quickcrypto3689]

Ross Olinger exactly!

[@MoneyWeekVideos]

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.

[@mayare1919]

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.

[@cburn455]

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

[@bhaskey7]

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

[@swpl1993]

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 :)

[@relaxingsounds1588]

Sophie Wong hello

[@vturner]

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

[@clubpenguinwwefan08]

I am not even in university yet.

[@ballimaheswararao8363]

Try to do

[@avonbarksdale4947]

V are u now?

[@HarbAli47]

Did you finish?

[@abdallahsalloum4590]

Im in grade 10

[@shukhov]

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

[@Kashmir_Se]

Just advised my friend to follow your channel videos are classy

[@MoneyWeekVideos]

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.

[@thinkbigbrain]

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

[@MoneyWeekVideos]

For anyone who likes these videos there is also my moneycontent channel with around 30 more topics covered. It's free too. Tim.

[@MoneyWeekVideos]

richsmartkid - market making is a defined role provided by the banks at certain exchanges such as the LSE. The banks commit to keep a market running in certain shares/other assets so the exchange can offer liquidity. Prop trading is risking the bank's own capital on trading (whether in forex, shares, commodities or whatever). So the two roles are different. Tim.

[@MoneyWeekVideos]

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.

[@FahadAlRajaan]

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

[@mriamlful]

lol investment banking is sexy

[@hassanmohamed3272]

How I find this very boring

[@draculanova6548]

*?

[@VimeosBetter]

moneys not for everyone

[@capitanlipoton7135]

VimeosBetter high risk=high reward

[@avaross.s2783]

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

[@MoneyWeekVideos]

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]

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.

[@qifanwu551]

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]

+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 ...)

[@windbreaker5364]

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

[@andrwleong]

One of the best channels on youtube along with khan academy

[@RajKumar-tk7jm]

Nice explanation . Thank you

[@usernameufo123]

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!

[@jasonli7579]

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.

[@liuzhejiang107]

Professional guidance brings about remunerative results. Great job Payden, you exceeded my expectations. Thank you.

[@Donnierra]

How can I achieve a good ROI and also build my portfolio? Please I’m interested.

[@liuzhejiang107]

Oh that’s quite easy. Payden has helped me build my portfolio over the years, and make profitable investments. Reach him on ... *Xanderpayden (a) g ma il. Com...* for further inquiries.

[@Pambegay]

Funny enough, I got on his trading program too. Although I feel the commissions are quite high, excellence service overall.

[@sachinma3313]

Very nicely explained. Thank u !

[@Bored-Panda]

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

[@mana8592]

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.

[@Insectalrs]

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

[@govindanvr7627]

very useful to me thank you sir

[@Meo0403]

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

[@Angie_Malaika]

Hello Sir, Kindly may I know what services do investment banks typically offer to customers?

[@MoneyWeekVideos]

zionismistruelyevil - yes these are all specialist areas. You would normally work in one of them (although a new graduate might be exposed to several in the initial phase of their career).

[@CR00711]

Amazingly explained. Many Thanks !

[@AdrianCampana-p7l]

I want this dude as my teacher.

[@MoneyWeekVideos]

Well so far I have been likened to Forrest Gump, Nick Hewer 20 years younger and now Richard Gere. I think I prefer the latter...! Tim.

[@watchthe1369]

Retail= Savings and Loan, Investment=Commercial Bank. They used to be separate entities by law in the USA due to the depression. They repealed the law that held them separate due to the big depression back in the clinton era in the USA.

[@Chethakmp3]

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

[@dorniaki]

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

[@AZNcutehottie69]

As a investment banker how much do salaries vary from each sector (1 through 5). I am a student uncertain of my path to take. Can you please tell me how profitable are the diferente sectors. I am interested in mergers and acquisitions advisory and corporate events.

[@aviksaha3485]

figure this as 20% of the profit you earn for the sector.......if ur are playing the 100mil over game....for the advisory sector...u got to negotiate ur earnings....

[@hajmola6210]

+Lucas D Your comment reflects the issue of grades becoming meaningless without a solid career plan.

[@jabhatta]

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 ?

[@acamporota]

do you think is possible make some kind of tutorial for people who has no experience at all in this field to start to do investment? for example if you wanna buy stock you need to open an account somewhere...or could be done directly from internet..ecc ecc.... and give some practical tip...whot kind of stock buy if you wanna invest money for your future...since with this big economic crisis...probab ly a lot of people wont even have pension in future...so would be nice to know how to invest

[@markdfoti]

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

[@konradwolkowski]

I am just wondering, asset management department would be in which category out of these five?

[@Dormano_Wild_Rift]

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

[@old263]

Love these classic videos

[@nihalmelodies3800]

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

[@aravinrao705]

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

[@penningtoncaptial8826]

Very nice description.

[@nashty1332magic]

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 :)

[@rahulsaxena3380]

what is difference between merchant bankers and investment bankers?

[@ThisIsMTH]

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]

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.

[@MoneyWeekVideos]

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

[@Tutul900]

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?

[@gracege3836]

Tim, where does broker dealer business sit?

[@JacoblBroughton]

Interesting video! Private equity industry & investment firms are about to be reinvented with blockchain. Something like Muirfield IP is utilizing blockchain technology to do exactly this.

[@binoyhalder5988]

How many day they work in a month

[@Carcaroff87]

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)?

[@vaibs4u2008]

Good tutorial, Thanks

[@hanselalmeida5813]

Can investment banks indulge in proprietary trading in their own investment banks?

[@sebastionay]

Institutional Traders trade on behalf of the banks, Prop traders are independent traders paying to use the banks proprietary trading system.

[@noogahay]

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

[@MrTop3selected]

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

[@truthprevail3049]

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