What do investment banks actually do? - MoneyWeek Investment Tutorials

Sdílet
Vložit
  • čas přidán 10. 07. 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/

Komentáře • 419

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety +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.

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety +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 Před 4 lety

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

    • @PoojaVkarma
      @PoojaVkarma Před 3 lety +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 Před 3 lety +1

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

  • @sherillmiller4549
    @sherillmiller4549 Před 4 lety +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 Před 8 lety +93

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

  • @andydidyouhear
    @andydidyouhear Před 12 lety +6

    One of the things that distinguish Tim’s videos from other educational videos on CZcams 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  Před 12 lety +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 Před rokem +26

    *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 Před rokem

      @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?

  • @EconomicsAlex
    @EconomicsAlex Před 10 lety +13

    Your videos are so helpful!!

  • @Advert4HK
    @Advert4HK Před 12 lety +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 CZcams.

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety +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  Před 12 lety

    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!

  • @Touhid
    @Touhid Před 12 lety +14

    Brilliant...You are Genious,,Indeed Sir

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 11 lety +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.

  • @joeblack1490
    @joeblack1490 Před 2 lety +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 Před 8 lety +6

    Thank You for such a crystal clear explanation , Sir !

  • @ClassicStang
    @ClassicStang Před 5 lety +6

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

  • @rupaalsingh4047
    @rupaalsingh4047 Před 8 lety +11

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

  • @JustnCas3
    @JustnCas3 Před 8 lety +20

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

  • @greatbamba2022
    @greatbamba2022 Před 8 lety +4

    Their explanations are very clear .Thanks

  • @shardulnsiddhesh
    @shardulnsiddhesh Před 8 lety +2

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

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 11 lety +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.

  • @yejin5315
    @yejin5315 Před 5 lety +1

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

  • @idsjesus73
    @idsjesus73 Před 11 lety +1

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

  • @rksingh4965
    @rksingh4965 Před rokem +1

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

  • @bobanyfingelf
    @bobanyfingelf Před 12 lety +1

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

  • @Insectalrs
    @Insectalrs Před 10 lety +1

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

  • @mattdathew2794
    @mattdathew2794 Před 8 lety +16

    A very clear cut video

  • @paulcaneda6627
    @paulcaneda6627 Před 12 lety +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!

  • @GhostmanGus
    @GhostmanGus Před 11 lety +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 Před 2 měsíci

      سلام بعد یازده سال ایا تریدر شدی ؟

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety

    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.

  • @carloscarmona6044
    @carloscarmona6044 Před 11 lety

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

  • @TambouraBaptiste
    @TambouraBaptiste Před 4 lety +1

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

  • @markdfoti
    @markdfoti Před 12 lety

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

  • @shekharmodi
    @shekharmodi Před 3 lety +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!

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety

    Thanks!

  • @yattaclub5
    @yattaclub5 Před 10 lety +59

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

  • @nihalmelodies3800
    @nihalmelodies3800 Před 5 lety

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

  • @sachinma3313
    @sachinma3313 Před 9 lety +3

    Very nicely explained. Thank u !

  • @kvijayasahithi3942
    @kvijayasahithi3942 Před 6 lety +1

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

  • @LumovestCareers
    @LumovestCareers Před 2 lety

    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 Před rokem

      But now they are into retail banking too.

  • @penningtoncaptial8826
    @penningtoncaptial8826 Před 8 lety +1

    Very nice description.

  • @bhaskey7
    @bhaskey7 Před 12 lety +1

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

  • @kickflipindy78
    @kickflipindy78 Před 8 lety +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 Před 7 lety

      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 Před 7 lety +6

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

    • @sjshivamjain
      @sjshivamjain Před 6 lety

      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 Před 5 lety

      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.

  • @mana8592
    @mana8592 Před 5 lety

    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.

  • @nowseemefly
    @nowseemefly Před 11 lety

    Thank you very much for the video! Very informative!

  • @windbreaker5364
    @windbreaker5364 Před 5 lety +1

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

  • @juliasharma1679
    @juliasharma1679 Před 11 lety

    Thank you .This was informative !!

  • @chandanmiku
    @chandanmiku Před 9 lety

    love your vedios..u explain the best..

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 11 lety

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

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 11 lety

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

  • @MrLegendarier
    @MrLegendarier Před 9 lety +2

    Really good!

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety

    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 Před 3 lety

      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.

  • @quamrulhasan2918
    @quamrulhasan2918 Před 4 lety +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

  • @truthprevail3049
    @truthprevail3049 Před 10 lety

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

  • @shikharchaudhary6984
    @shikharchaudhary6984 Před 3 lety +1

    You are brilliant. Keep making these videos.

  • @old263
    @old263 Před 4 lety

    Love these classic videos

  • @How.Dare.You.
    @How.Dare.You. Před 12 lety

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

  • @ashwinidivate..1881
    @ashwinidivate..1881 Před 8 lety

    thank u sir . u taught wid the ease

  • @CR00711
    @CR00711 Před 4 lety

    Amazingly explained. Many Thanks !

  • @tafri961
    @tafri961 Před 12 lety

    A Hearty Thanks for this valuable insight...

  • @mayare1919
    @mayare1919 Před 6 lety +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.

  • @cburn455
    @cburn455 Před 12 lety +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

  • @marsela7877
    @marsela7877 Před 2 lety

    can someone tell me what does he say at 10:18? he says something that sounds like ''money weak'' to me

  • @MilitaryBot
    @MilitaryBot Před 6 lety +2

    Just advised my friend to follow your channel videos are classy

  • @hier0phant336
    @hier0phant336 Před 11 lety

    Thanks for this. Very informative.

  • @emmanuelakoteyon2676
    @emmanuelakoteyon2676 Před 5 lety

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

  • @kizitodavid4457
    @kizitodavid4457 Před 9 lety

    Thank you so much this is brilliant

  • @hunain9287
    @hunain9287 Před 6 lety

    Best video you'd come across.

  • @andrwleong
    @andrwleong Před 11 lety

    One of the best channels on youtube along with khan academy

  • @iLukas93
    @iLukas93 Před 12 lety +1

    keep up the good work!

  • @RajKumar-tk7jm
    @RajKumar-tk7jm Před 8 lety +1

    Nice explanation . Thank you

  • @Neeraj-NN
    @Neeraj-NN Před 5 lety

    Good one, clarity in all that is said

  • @winsenken
    @winsenken Před 10 lety

    Thanks! Very useful!!

  • @creamyiceful
    @creamyiceful Před 11 lety

    fantastic, very clear.

  • @heheface
    @heheface Před 12 lety

    Thx ! Your explanation is very helpful ! ^_^

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety

    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.

  • @kingpanda1
    @kingpanda1 Před 7 lety

    Great video Tim thank you

  • @MrMonkeyHawaii
    @MrMonkeyHawaii Před 6 lety

    Very clear thanks for good video

  • @govindanvr7627
    @govindanvr7627 Před 4 lety +1

    very useful to me thank you sir

  • @thinkbigbrain
    @thinkbigbrain Před 12 lety

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

  • @SuperMima1993
    @SuperMima1993 Před 12 lety

    excellenttt video.... thanks alot

  • @dstanev2004
    @dstanev2004 Před 12 lety

    Quite useful video.. Thank you !

  • @Carcaroff87
    @Carcaroff87 Před 9 lety

    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)?

  • @acamporota
    @acamporota Před 11 lety

    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

  • @shannenss
    @shannenss Před 12 lety

    thank you, I needed investment lesson :)

  • @Chethakmp3
    @Chethakmp3 Před 3 lety

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

  • @FahadAlRajaan
    @FahadAlRajaan Před 6 lety

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

  • @ASPEDBUSDRIVER1
    @ASPEDBUSDRIVER1 Před 5 lety +2

    Fast fwd to 3:13. You're welcome

  • @davidalen9279
    @davidalen9279 Před 5 lety

    excellent. thank you sir.

  • @noogahay
    @noogahay Před 13 lety

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

  • @tebbyiguisi2652
    @tebbyiguisi2652 Před 8 lety +1

    Great video

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety

    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.

  • @JetStreamMarketing
    @JetStreamMarketing Před 11 lety

    Great stuff. Thanks.

  • @sanjeevsaju1099
    @sanjeevsaju1099 Před 6 lety

    thanks.....good one!

  • @qifanwu551
    @qifanwu551 Před 8 lety +3

    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 Před 8 lety +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 ...)

  • @binoyhalder5988
    @binoyhalder5988 Před 6 lety +2

    How many day they work in a month

  • @vaibs4u2008
    @vaibs4u2008 Před 10 lety +1

    Good tutorial, Thanks

  • @sksameer208
    @sksameer208 Před 12 lety

    Thanks a lot sir.

  • @MoneyWeekVideos
    @MoneyWeekVideos  Před 12 lety +2

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

  • @dorniaki
    @dorniaki Před 12 lety

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