FINANCE

1
FINANCE

• Corporate Finance
• Investment Banking
• Investment Management
• Sales Trading

2
Corporate Finance

• Work with a major company such as ExxonMobil or
  GE
• Firm analysis
• Debt Funding at the firm
• Financial Management

3
Investment Banking

• Debt Financing
• Detailed financial analysis
• Ratio/Fundamental
• IPOs
• Market Demand/Supply
• Prospects for the company

4
Investment Banking

• Who are the major players

5
Investment Management

• Mutual Funds vs. Investment Banks
• Fidelity, Janus, PIMCO, Vanguard
• JPMorganChase, Goldman Sachs, Merrill Lynch, Bear
  Sterns
• Wachovia, Bank of America, Wells Fargo

6
Mutual Funds

• Very Competitive industry
• Investing in Stocks, using lots of different
  tools
• Technical, Fundamental, and your own feelings
• Measured against other managers and against your
  respective index

7
Investment Houses

• Manage money for high net worth individuals,
  non-profit organizations, and pensions
• Smaller retail shops such as Charles Schwab and
  Edward Jones cater more to the normal individual

8
Sales Trading

• Equity, Options, Futures, Currency, and Bond
  Trading
• Buying/Selling to create a fair market for
  investors

9
Spear, Leeds Kellogg/Goldman Sachs

• 3 interviews
• On the floor of the NYSE
• Best winning day 3 million
• Worst losing day -2 million

10
Broadway Trading/JGM Securities

• 500,000 account
• Mainly technical analysis
• Best Winning day 3,500
• Worst Losing day 1,500
• 500/day x 220 trading days 110,000/year

11
What would you do?

• Market is down for 4 straight weeks
• Gold is declining today
• Treasuries are declining
• The VIX has hit post- Sept. 11th levels

12
Situation 2

• NASDAQ just rallied 3 over the past 2 hours and
  you made 2,000
• Take your profit?
• Try to make more?
• Sell some of your holdings and take a little risk
  for further gains?

13
Decisions?

• In real life these are split-second decisions
  that could make or break your career
• Investing, and in particular trading is a high
  stakes game that is not for everyone, but is
  probably one of the most rewarding jobs you may
  ever have