<p>Both are classified as investment bankers, and I know the base difference between what a researcher and someone in corporate finance does. But what about the difference in hours, pay, quality of life, excitement of job, ability to meet people, greater chance of moving up? </p>
<p>About me: I want to start my own business one day. Will doing coprorate finance at an ibank or will doing research at an ibank provide me me with a better foundation to do this? why. THANKS!</p>
<p>corporate finance- longer hours, prospect for higher pay, more work hours under more pressure, but more diversity and travel, more excitement,greater ability to meet people (usually),greater chance of moving up, less job stability. Generally better for starting own business IMO, though research/credit aspects are also highly valuable background. Requires more salesmanship/schmoozing .</p>
<p>Research- the other.</p>
<p>WAIT! researchers are considered "the other" in ibanking? explain. do other ibankers look down on them or something?</p>
<p>They have different jobs.
In my experience, both groups privately look down on each other somewhat. But corporate finance typically has more clout within the firm. Because they are a profit center line job, not a cost center staff job.</p>
<p>By "the other" I meant the opposite of described for corp. finance; ie if corp finance is described as more [something] then, necessarily, of the two, research most therefore be less of that something.</p>
<p>People in research are known as analysts, not ibankers. They are totally different jobs requiring different skill sets.</p>
<p>People that go into corpfin straight out of undergrad are called analysts too.</p>
<p>The people going into IB right out of undergrad are called Financial Analyst. There isn't nearly as defined a path in Equity Research and is more an area that is usually not people's first job, but those with prior work experience (many times in corporate finance). Having worked on both sides, I would generally agree with the distinctions that monydad makes. Aren't you a hs senior? It's a little early I would think to start thinking about this kind of stuff. I didn't have an appreciation in the differences of these areas until I was working in them.</p>
<p>No I'm a junior at a top 10 university. I'm looking at different firms as I apply for ibanking internships. I'm trying to figure out which line of work might serve me best. gellino, what has your experience been on both the equity and corporate finance side of ibanking? </p>
<p>BTW, I think all i-bankers are regarded as "analysts" out of undergrad at most bulge bracket firms.</p>
<p>...are part of the sell side. That is, the research they are doing are being sold or part of the deal package of ibank deal. currently there is alot of pressure on the sell side and research analysts as ibanks, banks, and other fin institutions reorganize and restructure themselves.</p>
<p>this experience can helpful in starting your own business. for example, you are a technology analyst. you cover and deal with various contacts in the technology field. You can start your own tech firm and leverage those contacts.</p>
<p>Sorry yosher, I didn't notice you were the OP. </p>
<p>At the time, at least, the position was called financial analyst by all firms for candidates going into investment banking right out of undergrad. For equity research, the most junior position was not as uniform, but commonly was called research analyst or research assistant depending on where you were. I have no idea if this type of convention is still accurate. </p>
<p>I started out in an investment banking financial analyst class at a bulge bracket firm and made the move over to equity research within the same industry group at the same company. I then moved to the buyside (actually making the investments) at a couple funds since then. I think corporate finance is the best initial step to take even if you don't ultimately end up in it long term because you get such a broad overview of the business world and it's an obvious structure of how to pursue positions when you have no prior work experience. Summer analyst positions weren't as common then, so very few applicants had any similar prior experience, and frankly if I had a summer position, I doubt I would have wanted to do it full time. Positions in equity research right out of college are less common and don't pay as well and don't have obvious 80 person analyst classes to apply to. However, they may be more rewarding, you could learn more and the hours are much more reasonable if you make the effort in finding a position.</p>
<p>My nephew is a sell side equity analyst. He worked two years in corporate finance and then switched to a research shop. The lowest entry level candidates are called associates, most firms require a MBA or CFA and he is working to pass his 3 level CFA tests. The hours are quite long......very often at least 60 hours per week. The work load increases when the companies under coverage makes a deal and you need to research and publish usually within a day or two....this happens constantly, I'm told.
Then, another heavy cycle is the quarterly earnings report season.
An associate salary ranges from $65K to $120K in base salary, according to experience, a sr. associate (already has MBA or CFA) averages $200K and analyst about $500K. Sr. analyst, much more.
They frequently have contacts with CEOs of the companies they cover since they call them up often to confirm news, earnings etc.</p>
<p>With the above information I was given, I can't agree with monydad's observations on research guys.</p>