We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How Do I Become an IPO Underwriter?

Gerelyn Terzo
Updated Mar 03, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

When a company issues shares in the public markets for the first time, an investment banker takes the lead on the underwriting process of the initial public offering (IPO). To become an IPO underwriter, you need to complete a college education and continue to attend graduate school. Certain financial certifications will likely be required. Getting in the door at an investment bank in some capacity can lead to becoming an IPO underwriter.

An underwriting manager, or investment banker, on an IPO deal leads the process for equity trading in the stock market. A banker who specializes in IPO deals is responsible not only for pricing and timing the new issue but also for bearing the financial burden to sell those shares to the public. In addition to the tactical skills that are required to become an IPO underwriter, a successful candidate must have sales capabilities.

An IPO underwriter should be able to read the market and economic environment and have the communication skills to successfully market a new stock to potential investors. You must demonstrate an aptitude to work long and hard hours because demands in the financial markets exceed more conventional career pursuits. In choosing an IPO underwriter, clients frequently turn to a previously established relationship with an IPO underwriter, and this is why networking skills are so important.

The first step to become an IPO underwriter is to earn a college degree. Successful candidates should major in mathematics, accounting, economics, or another financial segment. The largest investment banks often recruit candidates from the best universities around the world, and so attending an Ivy League college helps your chances if at all possible. Earning a high grade point average also helps a candidate to get in the door at a firm. Hiring investment banks expect a candidate to also earn a postgraduate degree such as a master's of business administration.

Large investment banks frequently recruit employee candidates from the most successful schools. It is also helpful for prospective employees to proactively seek out a recruiting firm in order to become an IPO underwriter. Networking and relationship building is vital in the financial services arena, and obtaining an internship could be the first step to become an IPO underwriter. It may be necessary to accept another position in a financial services firm, such as a junior banker or associate, before advancing to become an investment banker who underwrites new issues. If that is the case, you may still be able to work with senior investment bankers on IPO deals and can learn invaluable skills for the future.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Gerelyn Terzo
By Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in Mass Communication/Media Studies, she crafts compelling content for multiple publications, showcasing her deep understanding of various industries and her ability to effectively communicate complex topics to target audiences.
Discussion Comments
Gerelyn Terzo
Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in...
Learn more
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.