Investment Banking Interview Questions
You have just landed a big interview as an investment banker, and now you’re worrying day and night about the sort of investment banking interview questions you might be asked. These questions are not going to be you typical interview, and it is important you know that so you can adequately prepare. These questions will be more difficult, and some will definitely throw you off if you’re not prepared. Thus, let’s get you prepared for those investment banking interview questions!
Here are just a few questions that you may be asked; so stop right now and ask yourself if you would be prepared to answer them if you were being interviewed right now.
- “Give a scenario where companies would merge?”
- “What are some of the main factors that push mergers and acquisitions?”
- “What stocks do you follow on a regular basis, and why?”
- “If you were given $25,000 to invest in the stock market, how would you do it?”
- “What is the importance of diversification?”
- “Calculate 12 x 5.5 mentally”
These are just a few of the several investment banking interview questions you may be asked. At this point, ask yourself if you could have answered these on the spot if you were being interviewed right now. If not, it’s time you start practicing more, as some of these investment banking interview questions will catch you off guard. You may also be wondering, what the heck do some of these investment banking interview questions have to do with investing. Well, they may not be directly related to what you studied in university, but these employers use these tactics to weed out the weak employees, and keep the strongest and most determined.
Other Common Investment Banking Interview Questions
Question: You are in charge of a team, and one of your team members is slowing down the productivity of the team by slacking off. How would you handle this?
Answer: As a team leader, I would speak to this individual in confidence, and explain to him that his strengths are an asset to our team. Without his strengths, our team is only that much weaker, and we need him to pull his weight. I would keep a very professional, yet kind demeanor, letting the team member know that I believe in his skills, but at the same time, will not tolerate any slacking by my team members. The goal is to be positive towards my team members.
Once you see a few of these questions and get your feet wet, you will see that though investment banking interview questions and answers can be difficult and tricky, they are not impossible to prepare for. There is no need to make these questions complicated. Interviews are naturally nerve wracking, and it is up to you to prepare adequately for your investment banking interview questions.
Focus on the company
Companies are not looking for individuals who are unsure of their career path. The want to see that you are truly interested in becoming an investment banker. Investment banking interview questions may sometimes entail details about your current career search, and whether or not you are potentially looking at any other careers. Even if you are, it is important to not reveal these to the employer, as this is usually a red flag for them.
Common investment banking interview questions will also include “What do you know about our company?”, and “What do you personally think we can improve on as a company?”. These types of questions are likely to be asked, so prepare yourself by adequately researching the company you are being interviewed by. Once again, be sure to prepare enough, as some investment banking interview questions may catch you off guard.