Accounting Questions for Investing and Equity Research

For equity research and investment roles, a very good understanding of accounting is required to parse through financial statements and figure out what does and does not matter. Understanding how things flow through the three statements and how foreign operations affect company profits and cash flow is especially important for companies

Pitch Me an Oil & Gas Stock

What Energy Stock Would You Buy? Pitch me a stock is a question you are certain to get in any investing role or for equity research. You will occasionally get "pitch me a stock" in investment banking, but will not be required to go as in depth. For research and investing

Interview with: Transfer Pricing VP

What is transfer pricing? Transfer pricing refers to the rules and methods for pricing transactions between enterprises under common ownership or control (ie. subsidiaries of large multinationals). It largely applies to the pricing of cross-border transactions between related entities, a good example would be the pricing of services provided by a subsidiary

What Are Segregated Funds? Should You Buy Segregated Funds?

Segregated funds are mutual funds with embedded derivatives or insurance policies. For instance, a segregated fund may be a mutual fund that is similar to most other mutual funds except that they will guarantee 75% of your initial investment provided that you do not collect your money for 10 years.

How to Build Wealth as an Investment Banker

In a previous post, we confirmed that investment bankers do make a lot of money but do not necessarily have a lot of wealth. Most investment bankers end up saving less than their professional peers in consulting or accounting, which are lower paying professions – and much less than their

Working in Treasury

Related: Interview with a Treasury Analyst What is Corporate Treasury? Treasury is the cash management function of the bank – it is responsible for cash inflows and cash outflows. Ideally, the treasury maximizes the cash inflows while minimizing the cash outflows via a variety of risk management solutions and opportune financing. Treasury

Interview with: Private Debt Analyst

What is Private Debt? Think Private Equity, but in debt instruments. Private Debt invests in privately placed bonds that are closely negotiated between the bond issuer and purchaser. Debt structures are often highly tailored to the needs of the issuer. Due to this closed negotiation process, private debt investors often can "peek under

Do Investment Bankers Actually Make a Lot of Money?

Before we knew any better, we were at a wine and cheese in our undergraduate years to pillage extravagant free food at the information sessions and club events. From time to time we would run into someone from a major asset manager or corporate and they would try to do