by the finance major | Feb 19, 2023 | Education, Fun
There are many well-known people in the finance industry, from successful investors and entrepreneurs to influential economists and policymakers. Here are some of the most famous names in finance:
1. Warren Buffett – billionaire investor, CEO of Berkshire Hathaway
2. Jamie Dimon – CEO of JPMorgan Chase, one of the largest banks in the US
3. Lloyd Blankfein – former CEO of Goldman Sachs, one of the largest investment banks in the world
4. Janet Yellen – former Chair of the Federal Reserve, the central banking system of the US
5. Ray Dalio – billionaire hedge fund manager, founder of Bridgewater Associates
6. Christine Lagarde – President of the European Central Bank, former Managing Director of the International Monetary Fund
7. George Soros – billionaire investor, founder of Soros Fund Management
8. Paul Volcker – former Chair of the Federal Reserve, credited with ending the high inflation of the 1970s
9. Benjamin Graham – economist and investor, author of “The Intelligent Investor” and mentor to Warren Buffett
10. Michael Bloomberg – billionaire businessman and politician, founder of Bloomberg LP and former mayor of New York City.
by the finance major | Feb 17, 2023 | Education
Financial modeling is a technique used to make predictions about financial outcomes. It’s a big math problem where you use data and formulas to make projections about what might happen in the future.
A financial model might be used to help a company decide whether to invest in a new project, or to help a bank decide whether to make a loan to a borrower. The model takes into account various factors, such as the cost of the project, the potential revenue it could generate, and the risks involved.
To build a financial model, you first need to gather data and information about the thing you want to model. This might include things like historical financial statements, market data, and industry trends. You then use this information to create a set of assumptions and formulas that can be used to make predictions.
The most common tool used to build financial models is Microsoft Excel. Excel allows you to create formulas and equations that can be used to analyze and manipulate data. Once you have created a model in Excel, you can use it to run various scenarios and see how changes in different factors might impact the outcome.
Modeling allows you to make informed decisions based on data and projections, and can help you understand the potential risks and rewards of a particular investment or business venture.
Check out what a Discounted Cash Flow (DCF) model looks like at a high-level: DCF Example
by the finance major | Feb 17, 2023 | Education
The U.S. Treasury is a government agency that manages the country’s finances. Its main role is to oversee the collection of taxes, the issuance of government debt, and the management of the federal government’s finances.
Some functions of the Treasury include:
Collecting taxes: The Treasury is responsible for collecting taxes from individuals and businesses. It also enforces tax laws and investigates cases of tax evasion.
Managing the federal budget: The Treasury prepares the federal budget and works with Congress to get it approved. It also manages the government’s spending and works to ensure that the government has enough money to meet its obligations.
Issuing government debt: The Treasury issues a variety of securities, including Treasury bonds, notes, and bills, to finance the government’s operations. These securities are bought by investors, including individuals, banks, and foreign governments.
Enforcing financial sanctions: The Treasury has the power to impose economic sanctions on foreign governments and individuals who pose a threat to national security or engage in illegal activities.
Protecting the U.S. financial system: The Treasury works to prevent financial crimes, such as money laundering and terrorism financing. It also regulates financial institutions to ensure they are operating safely and soundly.
Overall, the U.S. Treasury plays a critical role in managing the country’s finances and ensuring the stability of the financial system.
by the finance major | Feb 17, 2023 | Education
The Federal Reserve, also known as the Fed, is the central bank of the United States. It’s like a bank for banks, and its main purpose is to regulate the money supply and keep the economy stable. The Fed’s “dual mandate” is to pursue maximum employment (healthy unemployment rate) and stable prices (healthy inflation rate).
The Fed was created in 1913, in response to a series of financial panics that had occurred in the United States in the 1800s and early 1900s. The idea was to create a central bank that would have the power to control the supply of money and credit, which could help prevent financial panics and keep the economy running smoothly.
The Fed has several important responsibilities, including:
- Conducting monetary policy: The Fed controls the money supply by adjusting interest rates and buying and selling government securities.
- Regulating banks: The Fed supervises and regulates banks and other financial institutions to ensure they are operating safely and soundly.
- Providing financial services: The Fed provides a variety of financial services to banks and other financial institutions, including clearing checks and processing electronic payments.
- Maintaining financial stability: The Fed monitors the financial system for signs of instability and takes steps to prevent or mitigate crises.
The Fed is run by a Board of Governors, which is appointed by the President of the United States and confirmed by the Senate. The Fed also has 12 regional banks located throughout the country, which help carry out its policies and provide financial services to banks in their regions.
by the finance major | Feb 17, 2023 | Career, Education
Chartered Financial Analyst (CFA): The CFA program is a globally recognized certification for investment professionals. It covers a broad range of topics, including portfolio management, asset valuation, and financial analysis.
Certified Public Accountant (CPA): The CPA certification is a well-respected credential for accounting professionals. It covers topics such as financial accounting, auditing, and taxation.
Financial Risk Manager (FRM): The FRM program is a certification for professionals who work in risk management. It covers topics such as quantitative analysis, financial markets, and risk management strategies.
Certified Financial Planner (CFP): The CFP certification is for professionals who work in financial planning. It covers topics such as retirement planning, estate planning, and investment management.
Chartered Alternative Investment Analyst (CAIA): The CAIA program is a certification for professionals who work in alternative investments. It covers topics such as private equity, hedge funds, and real estate.
Series 7: This certification is required to become a registered representative and allows professionals to sell a wide range of securities.
Series 63: This certification is required to become a securities agent and allows professionals to solicit orders for any type of security in a particular state.
Check out the Resources page for exam prep!
