What is Finance?
Finance is the field that deals with the management, creation, and study of money, investments, and other financial instruments. It involves a broad range of activities and disciplines, including the following key areas:
- Personal Finance
- Corporate Finance
- Public Finance
- Investment Finance
- Financial Markets and Institutions
Finance as a discipline integrates principles from economics, accounting, mathematics, and statistics to provide a comprehensive understanding of how money is managed and how financial decisions are made. The ultimate goal of finance is to ensure efficient allocation of resources and to maximize value, whether at the individual, corporate, or government level.
- Investment Banking | Private Equity | Capital Markets: tends to lead the way in timing when it comes to recruiting.
- Full time positions: summer/fall of junior year
- Junior year internship: winter/spring of sophomore year
- Asset Management: tends to be a bit later than IB
- Full time positions: fall of senior year
- Junior year internship: spring/summer of sophomore year
- Wealth Management | Corporate Finance | Research: tends to be more flexible than IB & asset management.
- On-going recruitment throughout the year
- Washington University Investment Banking Club‘s objective is to raise interest in potential careers in IB and to mentor candidates through the recruiting process for internships and full-time positions.
- Women in Finance aims to inspire and support young women to become tomorrow’s leading investors.
- Redefine Her Street – empowers college women with the tools, community, and confidence to pursue careers in finance.
- The Women’s Network focuses on cultivating and celebrating women’s ambition by connecting members to industry leaders, professional development resources, and career opportunities.
- Finding Finance‘s purpose is to help students identify which fields within finance align with their skills and interests the most.
- Washington University Student Investment Fund manages a well-diversified stock portfolio of over $100,000. Students focus on finding and pitching undervalued stocks and creating a community where students interested in investment and finance can come together.
- Olin Venture Capital is dedicated to providing its members exposure to the VC industry through deep engagement with organizations and companies throughout the VC ecosystem.
- TAMID exists to develop the professional skills of undergraduate students through hands-on interactions with the Israeli economy, and they offer a trading competition.
- Washington University Investment Management Company builds and manages the University’s investment portfolio. WUIMC offers annual internships to WashU Sophomores and full-time positions to graduating Seniors.
- The Forté Foundation has empowered women for over two decades by increasing access to business education, career development, and professional opportunities through skill-building, industry exploration, and corporate connections.
- The Kopolow Business Library’s Bloomberg Lab allows students to explore and analyze real-time financial market data on Bloomberg terminals.
IB deals primarily with raising money for companies, governments, and other entities. IB will also facilitate mergers & acquisitions, reorganizations, and broker trades for institutions and private investors.
-Learn more from Investopedia
In many finance interviews, especially for positions in Investment Banking (IB) and Private Equity (PE), the process often involves both behavioral and technical interviews. The behavioral interviews assess your fit for the company culture, your soft skills, and your ability to handle various work situations. In contrast, the technical interviews evaluate your financial knowledge, analytical skills, and proficiency in industry-specific concepts.
What Is It? Technical interviewing is a type of interview commonly used in finance, particularly in Investment Banking (IB) and Private Equity (PE), where candidates are given industry-specific analytical questions. The goal is to assess the candidate’s understanding and fluency with relevant accounting and financial concepts. These interviews serve as a basic qualification check to ensure the candidate possesses the necessary technical knowledge for the role. While often regarded as a “check the box” exercise, passing the technical interview is crucial for demonstrating commitment and interest in the position.
Purpose of Technical Interviews
- Assess Basic Competence: Evaluate the candidate’s foundational knowledge in finance and accounting.
- Verify Analytical Skills: Test the ability to analyze financial statements, value companies, and understand financial models.
- Demonstrate Commitment: Show that the candidate is serious about the role and has invested time in preparing for industry-specific challenges.
- Qualification Threshold: Serve as a preliminary filter to ensure only technically qualified candidates proceed to the next stages of the interview process.
What are the general types of questions in technical interviews? Technical interview questions generally fall into a few buckets: Accounting, Corporate Finance, Valuation (Equity Value and Enterprise Value, Valuation Metrics and Multiples), Modeling (Discounted Cash Flow (DCF) Analysis, M&A and Merger Models, and Leveraged Buyout (LBO) Models), and Brain Teasers.
- Wall Street Prep: Sophomores interested in applying for WSP online modular training should reach out to the CCE Business Career Community for details.
Technical Interview Preparation
- Financial Statements: Be able to analyze and interpret income statements, balance sheets, and cash flow statements.
- Valuation Methods: Understand different valuation techniques, including Discounted Cash Flow (DCF), Comparable Company Analysis, and Precedent Transactions.
- LBO Models: Know how to build and interpret Leveraged Buyout (LBO) models, a key skill for PE interviews.
- M&A Concepts: Familiarize yourself with merger and acquisition (M&A) concepts and how transactions are structured.
- Market Trends: Stay updated on current market trends and significant transactions in the industry.
Practice and Resources
- Mock Interviews: Schedule mock interviews with your Career Coach or mentors to simulate the interview environment and get feedback.
- Finance Courses: Consider taking finance courses or certifications (e.g., CFA, financial modeling courses) to strengthen your technical knowledge.
- Study Guides and Books: Use study guides, books, and online resources tailored to IB and PE interview preparation.
- Networking: Talk to professionals in the industry to gain insights into the interview process and expectations.
Learn from Michael Schumacher, the WCC’s industry expert for financial services, as he covers various questions you might face in the interview process and gives general advice as you prepare:
Wealth management is an investment advisory service that combines other financial services to address the needs of individual portfolios.
-Learn more from Investopedia
Corporate finance focuses on managing the financial health of their organization. This includes “how corporations can use long- and short-term financial planning and other strategies to source funding, structure capital, make investments and employ accounting techniques to maximize shareholder value. It focuses both on day-to-day cash flow and on long-term planning.” In other words, they manage the reporting and the strategy of the organization.
– Learn more from Investopedia
Capital Markets are the venues where funds are exchanged between buyers (capital suppliers) and sellers in the form of equity securities, bonds, or other financial assets (typically through secondary market trading).
– Learn more from Investopedia
Some examples of Capital Markets include:
- Sales & Trading (Goldman Sachs, JP Morgan)
- Proprietary trading (Citadel, Jane Street)
- Quantitative trading (DRW, Akuna, SIG)
Research is a deep quantitative and qualitative analysis to make informed recommendations on an asset or asset allocation.
Some examples of Research include:
- Equity research (Stifel, Wolfe)
- Fixed income research
- Macro research
- Quantitative research
- Do I understand the roles within Finance? (Ex: Investment Banker, Wealth & Asset Manager, Capital Markets & Trading, Private Equity, Corporate Finance, etc.)
- Do I understand the differences in skill needed. tasks and environment for each?
- Do I understand how the different roles work together?
- Do I understand the typical progression in different Finance careers?
- Have I met with a Career Coach?
- Have I identified a mentor(s)?
- Have I updated my one-page resume and LinkedIn profile?
- Have I practiced drafting a cover letter? Have I reviewed my networking approach?
- Have 3 people reviewed my portfolio including a Coach and industry professional?
- Have I prepared for fit, behavioral, and technical interview questions?
- Have I scheduled mock interviews and tapped into industry Career Peers?
- Big Interview – Helpful in practicing for HireVue’s and recorded interviews
- Jobscan
- WSO IB Resume Template
- Resume & Cover Letter Tips
- Business Career Community
- LinkedIn – Rock Your LinkedIn Profile
- Cover letters, if customized, can provide the narrative to help you stand out, show a connection to the company/role. Considerations:
- WHY you interested in this employer and specific opportunity
- Demonstrate company research and insight into work
- Mention your contact/referral if you have one (and they gave you permission)
- Identify 2-3 talents, backed with examples of how you will bring an impact to their need linked to the posting/role
- Handshake – Create a profile and upload a default resume
- Monitor upcoming Events and Job Postings; Attending events are an important way to network and learn
- Review The Business Career Community Newsletter and TEAMS channel
- Schedule a Mock Interview (Fit/Behavioral) with the Career Coach
- Technical Interviews can be scheduled with CCE Finance Career Peer Leaders
- Finance interviews will include a combination of fit, behavioral, and technical questions. Most IB processes will include multiple rounds, ending with multiple interviews defined as a Superday. It will be important to prep for each portion of the interview. IB technical differ from W&AM, PE & Corp. Finance. Lean into the CCE for help with customizing your prep.
- Join the Business Career Community and explore learn.WashU
- Vault Guides (provided by WashU)
- Register with wustl.edu email address.
- Explore Guides, Day in the Life overviews and Company Rankings
- Finance Articles on the Mergers and Inquisitions website
- Investment Banking article from the Mergers and Inquisitions website
- Wall Street Oasis
- Register HERE for free account; Explore videos about industry
- Investopedia
- Search “what is investment banking” …or the “buy vs. sell side”
- Seach the Careers section
- Street of Walls
- Wall Street Journal
- Wall Street Prep (Free Articles & Resources)
- eFinancial Careers – Careers in Financial Markets
- Download the free app for your iPhone or iPad. A printable PDF version is also available. See Graduate Guide and Advice sections.
- Guide to Finance, Deutsche Bank
- Forte Foundation: Find Your Future in Finance Guide – (buy vs. sell side)
- Forte Foundation – WashU is a “Rising Star” partner school.
- Career Ready Program , Find Your Future in Finance, Finance conferences & events.
- Girls Who Invest
- 100 Women in Finance – Check out Next Generation Initiatives
- Synergist Network
- IB Recruit
- The Minority Network
- Wall Street Bound
- Greenwood Project
- SEO Career
- Strive
*Many banks offer diversity programs (check websites, under Careers). Our CCE group has a more exhaustive list of programs.
- Want to hear more about the various types of finance career paths? Hear directly from alumni, employers and industry experts. Check out our Finding your Fit in Finance podcast series. You can listen on the go!
- Already zeroed in on investment banking as your path? Check out our IB Insights podcast series for in-depth conversations about the industry and career. You can listen on the go!
- What is a Superday – CFI
- Wall Street Prep
- Sophomores interested in applying for WS Prep IB Prep online modular training should reach out to the CCE Business Career Community for details.
- Free Materials; Wall Street Prep – IB Interviews
- IB Vine, Chancery, Wall Street Oasis – Technical Interview Guide
*IB, CF and PE technicals may focus on topics such as accounting principles, DCF, LBO, financial statements, valuations and excel. PE interviews may include a business case. W&AM may ask you to pitch a stock and be aware of types of Assets under management. All might ask about macro/market trends.
- Have I started following the markets?
- Have I started to read the news regularly and listen to podcasts?
- Can I speak intelligently about trends in Finance?
- Have I followed a sector and watched how it is evolving?
- Can I speak about a recent IPO?
- Am I attending finance events on campus?
- Wall Street Journal – daily newsletter, “WSJ 10 Point”
- To access, go to WSJ.com/WUSTL. Log in with your WUSTL key and create an account using your WUSTL email as your user ID.
- Bloomberg – WashU Bloomberg Terminals
- Seeking Alpha
- The Morning Brew – daily newsletter
- Exec Sum – daily newsletter – M&A deals & IPOs
- New York Times DealBook, Barron’s, Financial Times, The Economist, Reuters, Market Watch, Forbes, Kiplinger, Yahoo! Finance
- Most Top Banks Produce Market Intelligence; Examples:
- Goldman Sachs – “Intelligence” section
- Morgan Stanley – “Our Insight” section
- Notable Books:
- Investment Banking Books by Rosenbaum & Pearl, Random Walk Down Wall Street-Malkiel, Alpha Trader-Donnelly, Barbarians at the Gate-Burrough & Helyar, Market Wizards-Schwager, Five Frogs on a Log-Feldman & Spratt, Financial Modeling & Valuations-Pignataro, Goldman Sachs Reading List, 2020
- Notable Podcasts:
- Invest Like the Best – Patrick O’Shaughnessy, The Bid – Blackrock, Wall Street Oasis, The Journal – WSJ, Thoughts on the Market, Alpha Exchange, Olin Finance Club, Rebank, Millennial Investing, Deal of the Week, Motley Fool Money, Cashflow Ninja, M&A Science, TBOY (formally Robinhood Snacks)
- What market sector interests you? Speak to past, present & predictions.
- Major indices at the top of the WSJ and movements over time.
- Macro trends in major world economies and effects on the markets and how industries are evolving? Can you talk about a current world event and it’s impacting the financial market?
- Business news, especially IPOs, mergers, buyouts, market swings, etc.
- Understand linkages – how are events affecting these indices, why are indices moving the way that they are, general cause and effect of the events.
- WashU’s Center for Career Engagement’s Networking Page
- WashU Finance Network
- WashU CNX
- Networking & Informational Interviews