Careers in Finance

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

Careers in Finance

What is Finance?What is Finance? Finance is the study of how to Finance is the study of how to invest and raise money invest and raise money

productivelyproductively.. Money and capital markets Money and capital markets reviews the banking system reviews the banking system

and the marketsand the markets Corporate finance deals Corporate finance deals with raising money for firms with raising money for firms

raise money and what new projects to invest in.raise money and what new projects to invest in. Investments Investments deals with the working of securities deals with the working of securities

markets and the valuation of stocks and bondsmarkets and the valuation of stocks and bonds The study of The study of financial institutions financial institutions considers who the big considers who the big

banks and insurance companies are and how they banks and insurance companies are and how they operate and participate in the market.operate and participate in the market.

Careers in Finance

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

Careers in Finance

What Types of People Do Well in What Types of People Do Well in Finance?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.

Careers in Finance

Job ProspectsJob Prospects The Job prospects in finance have never been better. According The Job prospects in finance have never been better. According

to employer plans, 1997 is shaping up to be one of the best to employer plans, 1997 is shaping up to be one of the best years for hiring in history.years for hiring in history.

"Brokers were paid an average of $124,000 in 1996""Brokers were paid an average of $124,000 in 1996" Jobs that pay the most: "Financial Planner $144,935, Stock Broker: Jobs that pay the most: "Financial Planner $144,935, Stock Broker:

$106,493" from Money Magazine's Best Jobs in America, February $106,493" from Money Magazine's Best Jobs in America, February 1992, p. 67.1992, p. 67.

"Jobs that Satisfy: Bank Officer (ranked #2 out of 100)" from Money "Jobs that Satisfy: Bank Officer (ranked #2 out of 100)" from Money Magazine's Best Jobs in America, February 1992, p. 67.Magazine's Best Jobs in America, February 1992, p. 67.

Careers in Finance

CAREERS IN BANKINGCAREERS IN BANKING

Common entry-level jobCommon entry-level job: : Credit traineeCredit trainee

Common mid-career jobCommon mid-career job: : Commercial Loan OfficerCommercial Loan Officer

ExampleExample: Banc One has hired a : Banc One has hired a number of students at salaries in the number of students at salaries in the low 30s.low 30s.

Careers in Finance

What You Need to Make it in BankingWhat You Need to Make it in Banking

A broad understanding of businessA broad understanding of business Good people skillsGood people skills Marketing skills and enthusiasmMarketing skills and enthusiasm A strong understanding of accountingA strong understanding of accounting Backgrounds in corporate finance and Backgrounds in corporate finance and

investmentinvestment Good written communication skillsGood written communication skills

Careers in Finance

PositionBoatmen's

BancsharesWest One Bancorp

Trainee 25000 25000

Junior loan officer 33000 31000

Portfolio lender 40000 45000

Senior corporate loan officer

50000 65000

Commercial loan department manager

80000 110000

Representative Salaries in Banking

Careers in Finance

Careers in Investment BanksCareers in Investment BanksCommon entry level jobCommon entry level job: :

Stock-broker, trader or security analystStock-broker, trader or security analyst

Common mid-career jobCommon mid-career job: :

VP or Managing director.VP or Managing director.

Example: Example: A number of students have landed jobsA number of students have landed jobs

in investment banking over the years at salaries in thein investment banking over the years at salaries in the

40-50K range (undergraduate) and 70K to 130K range 40-50K range (undergraduate) and 70K to 130K range (MBA).(MBA).

Careers in Finance

What You Need to Make it in What You Need to Make it in Investment BankingInvestment Banking Good ability to analyze accounting numbers critically.Good ability to analyze accounting numbers critically. Good math skills (nerds taking over Wall Street in 94)Good math skills (nerds taking over Wall Street in 94) A good understanding of international and domestic politicsA good understanding of international and domestic politics Some good macroeconomics coursesSome good macroeconomics courses Investments classesInvestments classes People who are good with cases, especially valuation, will People who are good with cases, especially valuation, will

make great investment bankers. Take a case course in make great investment bankers. Take a case course in finance.finance.

Strong computer and math skills.Strong computer and math skills. CFA or Series 7 Exam PreparationCFA or Series 7 Exam Preparation

Careers in Finance

Advice on Investment BankingAdvice on Investment BankingFrom Kelly Kamm, William & MaryFrom Kelly Kamm, William & Mary

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

Careers in Finance

Investment Banking SalariesInvestment Banking Salaries

Job Level Alex Brown Merrill Lynch

Entry level $90,000-110,000 $80,000-$125,000

Vice President $175,000-250,000 $130,000-475,000

Director $400,000-650,000 $250,000-575,000

Managing Director $400,000 +$400,000-1.5

million

Department head $750,000-1 million $1.5 million +

Source: Smart Money, August 1992

Careers in Finance

Careers in Corporate FinanceCareers in Corporate Finance Common entry level jobCommon entry level job: Treasurer's : Treasurer's

Assistant, Junior Financial Analyst.Assistant, Junior Financial Analyst. Common mid-career job: Common mid-career job: Assistant to Assistant to

Chief Financial Officer.Chief Financial Officer. ExampleExample: Pepsico, Ford and many other : Pepsico, Ford and many other

firms hired seniors into financial analyst firms hired seniors into financial analyst jobs in 1996.jobs in 1996.

Careers in Finance

What You Need to Make ItWhat You Need to Make It Good problem-solving skills.Good problem-solving skills. Ability to deal with ambiguity and rapidly Ability to deal with ambiguity and rapidly

changing environment.changing environment. Strong computer skills.Strong computer skills. You need to enjoy business and You need to enjoy business and

corporate environments.corporate environments. Many firms want technical and Many firms want technical and

engineering backgrounds.engineering backgrounds.

Careers in Finance

General Motors Pepsico

Junior Financial Analyst $20,000-43,200 $45,000-50,000

Senior Financial Analyst

$46,910-82644 $60,000-70,000

Divisional comptroller $110,000-172,000 $70,000-80,000

CFO $200,000-350,000 $150,000-200,000

Typical Salaries in Corporate Finance

Careers in Finance

Key to Getting the Job You WantKey to Getting the Job You Want The time to start preparing is The time to start preparing is nownow. Don't wait until your senior year to . Don't wait until your senior year to

get going.get going. Read up on companies you are interested in.Read up on companies you are interested in. Read about what is going on in the Wall Street Journal.Read about what is going on in the Wall Street Journal. Learn to use the World Wide Web for job searches.Learn to use the World Wide Web for job searches. Start with informational interviews.Start with informational interviews. Learn how to interview well by talking to others who interview.Learn how to interview well by talking to others who interview. Do a personal skills inventory and build on your weaknesses.Do a personal skills inventory and build on your weaknesses. Get involved in activities that will count on your resume:Get involved in activities that will count on your resume:

Good internships (pay should be secondary)Good internships (pay should be secondary) Think of starting your own businessThink of starting your own business Think of computer skillsThink of computer skills Leadership positions on campusLeadership positions on campus

Careers in Finance

Interviewing AdviceInterviewing Advice Present yourself wellPresent yourself well Ask interviewer what they are looking for.Ask interviewer what they are looking for. Sell your skills and yourselfSell your skills and yourself Avoid arrogance (biggest mistake good students make)Avoid arrogance (biggest mistake good students make) Ask questions which show your interestAsk questions which show your interest Try to tell something about yourself which fits the job requirementsTry to tell something about yourself which fits the job requirements Don't worry about being nervousDon't worry about being nervous Don't be afraid to say you don't know the answer to a question (show Don't be afraid to say you don't know the answer to a question (show

integrity).integrity). Follow up with a thank you letter immediately which expresses your Follow up with a thank you letter immediately which expresses your

feeling that a good match exists.feeling that a good match exists. Greet the interviewer with a handshake and a smile.Greet the interviewer with a handshake and a smile. Don't be put off by rudeness, multiple interviewer tricks etc.Don't be put off by rudeness, multiple interviewer tricks etc.

Careers in Finance

Recommended ResourcesRecommended Resources The Annual Reports of companies you would like to target.The Annual Reports of companies you would like to target. What Color is Your Parachute? (good to analyze what you want)What Color is Your Parachute? (good to analyze what you want) Harvard Business School Career Guide: Finance 1997 Harvard Business School Career Guide: Finance 1997

Discusses experiences of students who have gone into investment Discusses experiences of students who have gone into investment bankingbanking

Lists what specific employers look for in the hiring processLists what specific employers look for in the hiring process Gives addresses and contact names for leading investment banks Gives addresses and contact names for leading investment banks

and corporations.and corporations. Book sells out fast. Book sells out fast. Convergence Multimedia: Careers in FinanceConvergence Multimedia: Careers in Finance. CD-ROM tells you what . CD-ROM tells you what

companies are looking for, salaries and trends. Call (214) 258-6681 to companies are looking for, salaries and trends. Call (214) 258-6681 to purchase or get in labs.purchase or get in labs.

http://www.cob.ohio-state.edu/dept/fin/osujobs.htm has more details on http://www.cob.ohio-state.edu/dept/fin/osujobs.htm has more details on finance jobs.finance jobs.