1 / 13

Career Tracks and Electives Finance

Functional Skills in Finance Finance electives Career Tracks And Elective Slates Additional comments. Career Tracks and Electives Finance. 1. Functional Skills in Finance. Preparing for a finance career requires three broad skill sets

kurt
Download Presentation

Career Tracks and Electives Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Functional Skills in Finance Finance electives Career Tracks And Elective Slates Additional comments Career Tracks and Electives Finance

  2. 1. Functional Skills in Finance • Preparing for a finance career requires three broad skill sets • Quantitative Modeling Mathematical models and tools used price simple to complex financial instruments, manage portfolios, or manage risk. • Financial Analysis Modeling, understanding and using data in financial statements. Used in corporate finance and investment banking. • Institutions Understand the structure and functioning of financial markets, financial institutions, and the regulatory environment they reside in.

  3. 2. Functional Skills in FinanceSkills, Careers, and Courses • The relative emphasis on quant, financial analysis, and institutions depends on the career track. For example, would-be traders may stress quant courses while those going to corporate treasuries may seek more financial analysis. • Regardless, it is worth remembering that • Most courses offer cross-exposure. For example, risk management draws on and teaches derivatives. It is rare for a course to exclusively focus on one set of skills to the exclusion of all others. • Most careers require a vector of skills. For example, fixed income traders or risk managers are better off with an understanding of banking institutions and financial market microstructure.

  4. 2. Finance ElectivesA. Capital Markets • These electives largely (again, not exclusively) emphasize quantitative modeling skills.

  5. 2. Finance ElectivesB. Corporate Finance • These electives largely (again, not exclusively) emphasize financial analysis skills

  6. 2. Finance ElectivesC. Institutions • These electives largely (again, not exclusively) emphasize institutional issues such as contracts in money management or the regulation of commercial and investment banks.

  7. 3. Career Tracks and Elective Slates • The next slide lists typical MBA career tracks and the most suitable electives for these choices. • Notes • The career track list is typical, not an exhaustive list of all possibilities. New opportunities do crop up and may not fit neatly into the slots below. • The elective slate is recommended not required. Using it as a template, adapt it to individual background, prior experience, and interests.

  8. 3. Career Tracks and Elective SlatesDescriptions • Corporate finance – helping companies raise capital, manage cash, relations with financial intermediaries, plan and pay for major strategic investments, acquisitions etc. • Investment banking is the other side of corporate finance – help companies raise capital, manage finances and investments. • Equity analysis involves researching companies for investment banks. Portfolio management positions involve making investments for mutual funds, hedge funds, private equity, etc. or providing analytic support for these investments.

  9. 3. Career Tracks and Elective SlatesDescription • Financial engineering and risk management. Typically positions in trading desks. Develop and analyze potential trades and manage their risks. Sometimes sell to large institutions. • Commercial Banking. Careers in corporate lending and relationship management to developing and managing consumer and real estate finance products or asset liability management of the bank. • Other positions, e.g., those in Fannie Mae, Freddie Mac, World Bank, consulting companies, regulatory agencies, etc. combine some aspects of the above.

  10. 4. Additional CommentsOther Classes • Students interested in equity analysis and portfolio management can apply to join a team of managers of the student run Mayer fund. Some students may consider the (VC) New Market Growth Fund. • An accounting course in financial statement analysis (e.g., BUAC 743) is especially useful to those interested in corporate finance and equity analysis. While it can be taken at any time, earlier is better.

  11. 4. Additional CommentsNon-Finance Majors • Non finance majors interested in finance electives typically benefit from the courses in the corporate finance track. • For instance, BUSI 647, BUFN 750, BUFN 752, and BUFN 753 may be of interest to students interested in consulting or strategic management.

  12. 4. Additional CommentsNon-Academic Activities • Students often spend time getting involved and informed. The MBA finance association website is http://www.rhsmith.umd.edu/organizations/mba-finance

More Related