The primary difference between corporate finance and investment banking is the type of financing being used. Corporate Finance involves decisions related to company funding, debt versus equity investment sources, analysis of financial projects' profitability and costs while Investment Banking relates specifically to activities that help raise capital for a business through stock trading or other means.
Corporate finance and investment banking careers are long-term, lucrative options for any career student. When comparing these two fields of work, it is important to take into account the nature of each job role including pay scale and hours as well as work-life balance in order to make a decision that best suits your needs.
There is a substantive difference between corporate finance and investment banking - corporate finance is an all-encompassing concept, while investment banking can only be classified as one small part. Investment Banking may be considered to fall under Corporate Finance; at its most basic level, it's actually just another form of financing.
Corporate financing helps in the management of an entity, whereas investment banking allows companies to grow and raise their capital.
The purpose of corporate financing is to help an organization in maximizing its worth through financial decisions that are strategic in nature and involve activities like resource allocation, identification of reinvesting options, raising capital by means of issuing equity shares or debt.
Corporate financing offers a wider range of jobs in the field than investment banking.
A corporate financing analyst needs to prepare financial reports for the company they are hired in whereas an investment banking analyst is required to prepare pitch books and memorandums for other companies.
A corporate financing analyst is in charge of preparing tax reports and providing advice for company finances. On the other hand, an investment banking analyst offers services to other companies as well.
We hope this article was helpful in understanding the difference between corporate financing and investment banking. If you have any questions, or you want to discuss something, feel free to mention them in the comment section below.