What are Common Investment Banking Interview Questions?

Investment banking is a powerful industry that wants to hire the best employees possible. As a potential employee, you will be asked several investment banking interview questions about formal and self-education as well as what personal characteristics will be beneficial to the position. Being prepared to answer even the toughest questions can allow for an advantage over other candidates.

One of the investment banking interview questions likely to be asked is how you keep up with financial news. This shows not only a passion for the industry but a form of self-education as well. Mention any books, magazines, websites, classes, lectures and conferences that are part of getting a regular dose of financial news. Make sure to be ready to explain why they are good sources for information, otherwise the interviewer may think it's a fake answer.

Another one of the investment banking interview questions that is likely to be asked is about how to handle a specific situation. For example, one may involve calculating a bond price and another may be choosing the better option when deciding between two courses of action. Being able to explain the answer in addition to just giving it is a chance to show true understanding of the industry.

The interviewer may also ask what happened in the stock market during a specific period of time such as last week, yesterday or Monday. Many of those who apply to investment banks are typically obsessed with the stock market and check it religiously via cell phone, television, radio, Internet or from streaming ticker symbols. Not knowing the answer may not bode very well.

Reading almost religiously about financial news can be beneficial when answering investment banking interview questions, but considering many candidates do the same, there needs to be a more descriptive and convincing answer when the interviewer asks why you make the best candidate. Having different licenses, such as the Series 7, as well as taking different classes after college can prove advantageous. Make sure to also add personal characteristics in the answer, such as being driven, being able to work as a team player or individually and being an exceptional problem solver.

When answering investment banking interview questions, the better you are able to back up the answers the better it will reflect on you as a job candidate and as a person. The employer wants someone loyal and committed, not someone who is going to get caught in a lie during an interview. It's also important to spend time researching the company, even if you think you already know enough about it.