So You Are Interest in a Finance Career...

1. So You Are Interest in a Finance Career...

2. What is Finance? • Finance is the study of how to invest and raise money productively. • Money and capital markets reviews the banking system and the markets • Corporate finance deals with raising money for firms raise money and what new projects to invest in. • Investments deals with the working of securities markets and the valuation of stocks and bonds • The study of financial institutions considers who the big banks and insurance companies are and how they operate and participate in the market.

3. What is Finance Like? • It is analytical. • It is based on economics principles. • It uses accounting information as an input. • It is international in perspective. • It evolves constantly. • It provides good job opportunities.

4. What Types of People Do Well in Finance? Finance needs people who are good at solving problems, who are comfortable with numbers and who like to work with people. Many finance jobs are people-oriented.

5. Job Prospects • The Job prospects in finance have never been better. According to employer plans, 1997 is shaping up to be one of the best years for hiring in history. • "Brokers were paid an average of $124,000 in 1996" • Jobs that pay the most: "Financial Planner $144,935, Stock Broker: $106,493" from Money Magazine's Best Jobs in America, February 1992, p. 67. • "Jobs that Satisfy: Bank Officer (ranked #2 out of 100)" from Money Magazine's Best Jobs in America, February 1992, p. 67.

6. CAREERS IN BANKING Common entry-level job: Credit traineeCommon mid-career job: Commercial Loan OfficerExample: Banc One has hired a number of students at salaries in the low 30s.

7. What You Need to Make it in Banking • A broad understanding of business • Good people skills • Marketing skills and enthusiasm • A strong understanding of accounting • Backgrounds in corporate finance and investment • Good written communication skills

8. Representative Salaries in Banking

9. Careers in Investment Banks Common entry level job: Stock-broker, trader or security analyst Common mid-career job: VP or Managing director. Example: A number of students have landed jobs in investment banking over the years at salaries in the 40-50K range (undergraduate) and 70K to 130K range (MBA).

10. What You Need to Make it in Investment Banking • Good ability to analyze accounting numbers critically. • Good math skills (nerds taking over Wall Street in 94) • A good understanding of international and domestic politics • Some good macroeconomics courses • Investments classes • People who are good with cases, especially valuation, will make great investment bankers. Take a case course in finance. • Strong computer and math skills. • CFA or Series 7 Exam Preparation

11. Advice on Investment BankingFrom Kelly Kamm, William & Mary "The key to embarking on a career in investment banking is to begin preparing from day one... A solid preparation begins with an investigation of the various specialties within investment banking, such as analysis and research, equity sales, fixed income securities, foreign exchange markets and mergers & acquisitions. The individual interested in investment banking should educate himself or herself on the background of major investment banks, keep up on current issues in the industry and ask questions of professionals in the field, academics and related contacts."

12. Investment Banking Salaries Source: Smart Money, August 1992

13. Careers in Corporate Finance • Common entry level job: Treasurer's Assistant, Junior Financial Analyst. • Common mid-career job: Assistant to Chief Financial Officer. • Example: Pepsico, Ford and many other firms hired seniors into financial analyst jobs in 1996.

14. What You Need to Make It • Good problem-solving skills. • Ability to deal with ambiguity and rapidly changing environment. • Strong computer skills. • You need to enjoy business and corporate environments. • Many firms want technical and engineering backgrounds.

15. Typical Salaries in Corporate Finance

16. Key to Getting the Job You Want • The time to start preparing is now. Don't wait until your senior year to get going. • Read up on companies you are interested in. • Read about what is going on in the Wall Street Journal. • Learn to use the World Wide Web for job searches. • Start with informational interviews. • Learn how to interview well by talking to others who interview. • Do a personal skills inventory and build on your weaknesses. • Get involved in activities that will count on your resume: • Good internships (pay should be secondary) • Think of starting your own business • Think of computer skills • Leadership positions on campus

17. Interviewing Advice • Present yourself well • Ask interviewer what they are looking for. • Sell your skills and yourself • Avoid arrogance (biggest mistake good students make) • Ask questions which show your interest • Try to tell something about yourself which fits the job requirements • Don't worry about being nervous • Don't be afraid to say you don't know the answer to a question (show integrity). • Follow up with a thank you letter immediately which expresses your feeling that a good match exists. • Greet the interviewer with a handshake and a smile. • Don't be put off by rudeness, multiple interviewer tricks etc.

18. Recommended Resources • The Annual Reports of companies you would like to target. • What Color is Your Parachute? (good to analyze what you want) • Harvard Business School Career Guide: Finance 1997 • Discusses experiences of students who have gone into investment banking • Lists what specific employers look for in the hiring process • Gives addresses and contact names for leading investment banks and corporations. • Book sells out fast. • Convergence Multimedia: Careers in Finance. CD-ROM tells you what companies are looking for, salaries and trends. Call (214) 258-6681 to purchase or get in labs. • http://www.cob.ohio-state.edu/dept/fin/osujobs.htm has more details on finance jobs.