Finance industry Q U I C K T I P G U I D E Venture Capital: insurance companies generate Money: Real returns over time with sovereign wealth, pension funds or growth growth potential; generally characterized as high changing industries such as technology, biotech, or green technology) with strong private R again public it portfolio companies' operations and profitability; eventually sell company or take potential purchases, negotiate deals, raise financing, or attempt to improve Firms: (PE) Equity Private corporations; buy/sell public secur Money ManagementFirms: catastrophic losses and to anticipate potential problems Insurance: higher risks and objectives within guidelines under which the investment pool is Asset Management: Finance Areas backgrounds. listed below and provides a wide variety opportunities of for many different needed funds. The finance industry can be broken down into several categories Finance is thestudy of moneyhow is managed and theactual process acquiring of What is the finance industry? Corporate Finance: securities. Also take deposits and provide loans companies, individuals, and government entities, and buy/sell stocks, bonds, and provide advice Banks: Commercial to companies, provide financing to ways that will ensure the greatest return from, knowing where it is, and helping its managers decide how to spend it in Hedge Funds: eal Estate:
equity stakes in startup and small help individuals and business manage risk to protect themselves from buy existing projects to better manage or develop new projects
large entities investing in stocks, bonds, derivatives
provide high returns investment fund that manages money from investors seeking manage a business's
manage themoney clients of to achieve specific financial
buy corporations, privatizethem,analyze and
ities manage investments for individuals or or individuals for investments manage
-
money and medium - - risk/high forecasting, where it will come come will it where forecasting, - size enterprises (rapidly - return opportunities organized
known to take
Finance industry Q U I C K T I P G U I D E Analytical: criticism outside of academics, attention to detail, goal oriented, competitive, ability to take • Skills: Soft • to determine how much capital is needed and analyze market demand • • Investment Banking current circumstances are what they are or to forecast what the future may hold • S technologies • T structure portfolios that are in used portfolio management and program trading • and participate in c reasonable budget; determine the optimal capital structure thefor corporation • purchase by their portfolio managers recommendations for clients; on buy • bankers or securities analysts • • economy but also on the broader financial markets • Analyst
KILLS KILLS YPES OF OF YPES Communication, leadership, teamwork, passion for industry, involvement Private Equity Private : liaison Underwriting between clients and other traders/security salespeople Mergers and Acquisitions Economist Venture Capital Quantitative Analyst develop: computer models to value securities and Analyst Financial Investment Analyst Entry Quant Strategist U - SED : P level itative OSITIONS
: Similar: to economist but strateg : analyze: data and trends in the economy in order to explain why : build: financial spreadsheet models for more senior investment : develop: mathematical models to predict the markets : prior prior :
: dealing with numbers, making deals, and familiarity for new for and familiarity deals, making numbers, with : dealing apital raising in the equity or debt markets : analyze: cash flows and expenditures and develop a :
: analyze: investments;sell on investment banking experience/higher degree : solid financial modeling skills, client skills, modeling financial solid : - side: recommend securi
ists generally not focus only on the - side: put out buy and sell
ties for sale or - facing skills skills facing
Finance industry Q U I C K T I P G U I D E safeguard corporate assets by using insurance policies or currency hedges al manage thepension fund and thecorporation's investments in other companies; Treasury base client build to calling understanding of how the business and the firm works, and usually involves cold- complete a training course to learn thebasics the of financial industry, gain an • to buy and sell on a proprietary basis; high risk Advisor: Financial • recommendations deepen their knowledge of their area of responsibility makingof the best stock • how large the company is and may specialize in certain areas provide regular research reports to the firm's clients; products will depend on • planning taxestate and encompass can and firms smaller in usually goals, financial clients' • • Media: Financial creating wealth financial goals and sometimes focus more upon preservation of wealth then on • Portfolio Management Portfolio Sales& Trading: responsibility for all aspects portfolioof construction and the client relationship • violating from employees company • Legal and Compliance and Legal on the financial markets or the economy
so handleso risk management, making sure that the right steps are taken to Stockbroker/Financial Consultant : generally enter on the ground floor and Hedge Fund Side Buy Side Sell Certified Financial Planner Financial Certified Investment Writing Banker Private Portfolio Manager Portfolio Compliance Officer Compliance : responsible for all of a company's financing and investing activities; activities; investing and financing a all of company's for : responsible : follow a list of companies, all typically a list of companies, : follow in the same industry, and : read the news, tracking down information, building models, and : take orders from: a orders portfoli take
: : work with their clients to plan investments and work towards
: : oversee client portfolios and usually have ultimate : : produce marketing pieces or mar : police: securities and investment firms to prevent : :
: guide their clients' finances in order to meet the SEC SEC regulations
o manager or using discretion on what
- taking
ket reports that focus
Finance industry Q U I C K T I P G U I D E American Financ American Websites Bloomberg CNBC Charter CNN CNN One Wire Career Fin Economist Investopedia Student Organizations at CMU at Organizations Student Students Have CMU Who Hired Employers Securities Woman Smart CMU Moneythink Club Actuarial Young & Ernst TradingDRW Bank Deutsche Suisse Credit Citi Company Trading Chicago Boeing Mellon BNY Blackrock Belvedere Trading Barclays Bank of America AP Capital
Money
ed Financial Analyst Institute Analyst Financial ed
e Association Association e
www.afajof.org www.afajof.org www.cf www.bloomberg.com www.money.cnn.com www.money.cnn.com www.cnbc.com www.onewire.com www.investopedia.com www.fincareer.com www.economist.com Business in Women Undergr Tartan Vanguard UBS Group Int. Susquehanna Enterprises Sesco S&P Capital IQ PNC Capital Mission Old Kennametal Jefferies Chase Morgan J.P. Sachs Goldman Geico
ainstitute.org Fund Association Finance aduate