What is Private Equity?
Private equity is a type of investment where a group of investors pools their money together to buy a company that is not publicly traded (meaning you can't buy its stock on a stock exchange). The goal of the investors is to help the company grow and become more...
What is a Hedge Fund?
A hedge fund is a type of investment fund that is run by professional money managers and caters to wealthy investors, institutions, and other sophisticated investors. Hedge funds aim to generate higher returns than traditional investments, such as stocks and bonds, by...
What is the CPA Exam?
The CPA (Certified Public Accountant) exam is a professional exam that someone takes to become a licensed public accountant. It's an extremely challenging exam that tests a person's knowledge in several areas related to accounting and finance. The exam consists of...
Back Office vs. Middle Office
Imagine that a store has three parts: the front, the middle, and the back. The front is where customers come to buy things, the middle is where the store keeps its inventory, and the back is where the store manages its finances and paperwork. In finance, we have...
What is the CFP Exam?
The CFP exam is a test that financial professionals take to become Certified Financial Planners. They help people manage their money, plan for their future, and make smart financial decisions. The CFP exam is made up of several sections that test a planner's knowledge...
What is the CFA Exam?
The CFA (Chartered Financial Analyst) exam is a certification for finance professionals typically specializing in areas such as investment management and financial analysis. The CFA program consists of three levels, each of which involves taking a six-hour exam. The...
Types of Deals in Investment Banking
These are the most common types of deals made in investment banking: 1. IPO (Initial Public Offering): This is when a company sells its shares to the public for the first time. When a company "goes public" through an IPO, it raises money from investors who buy its...
50 Most Common Acronyms in Finance
Here are some of the most common acronyms used and referenced in the finance world: IPO - Initial Public Offering M&A - Merger and Acquisition PE - Private Equity VC - Venture Capital IB - Investment Banking ECM - Equity Capital Markets DCM - Debt Capital Markets...
Title Hierarchy of Investment Banking
The hierarchy of investment banking titles typically follows a similar structure across most firms, although the specific titles and responsibilities may vary slightly. Here is a typical hierarchy from lowest to highest: 1. Analyst: This is the entry-level position...
Top Resume Tip to Get Noticed
When applying to finance internships and jobs, it's incredibly important to have your resume and cover letter polished. A great cover letter can set you apart in certain cases, but your resume is far more important. It's the hiring manager's first impression of you...
What is DCF Modeling?
DCF (Discounted Cash Flow) modeling is a type of financial analysis that is used to estimate the intrinsic value of a company. In simpler terms, it's a way to figure out how much a company is really worth. To understand how DCF modeling works, imagine that you're...
9 Bulge Bracket Investment Banks in the U.S.
The largest investment banks with operations in the United States, based on their total assets and global presence, are: JPMorgan Chase: With over $3 trillion in assets, JPMorgan Chase is the largest investment bank in the U.S. and offers a range of services including...
What is the Front Office?
In the finance industry, the term "front office" refers to the parts of a firm that directly generate revenue through interactions with clients. This can include functions like sales, trading, and investment banking. In general, front office roles are focused on...
What does Buy Side and Sell Side Mean?
In the finance industry, there are two main sides of the business: the Buy Side and the Sell Side. The Sell Side refers to banks, brokerage firms, and other financial institutions that sell financial products and services to their clients. This can include things like...
The Big 4 Accounting Firms and How They Differ
The "Big 4" refers to the four largest accounting firms in the world, which are Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst & Young), and KPMG (Klynveld Peat Marwick Goerdeler). These firms are international in scope and offer a wide range of services,...
Average Starting Salary for Finance Majors
The salary for finance majors straight out of college can vary depending on several factors, such as the specific role, location, and employer. However, according to data from the National Association of Colleges and Employers (NACE), the average starting salary for...
6 Best Personality Traits to Succeed in Finance
A career in finance can be very rewarding and it often takes a specific set of skills and personality traits to be successful. Here are some of the most important traits that can help you succeed in finance: 1. Analytical skills: One of the most important traits for a...
Most Common Finance Certifications
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...
6 of the Best Finance Programs in the World
1. Harvard University - Harvard Business School (USA): The Harvard Business School is one of the most prestigious business schools in the world and offers a rigorous finance program that includes courses in corporate finance, investments, and financial derivatives. 2....
Difference Between Finance, Accounting, and Economics Majors
Accounting: Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. Accounting majors learn how to prepare financial statements, manage accounts, and analyze...
4 Most Popular Careers in Finance
1. Corporate Finance: Corporate finance involves managing the financial activities of a company, such as budgeting, financial analysis, and investment decisions. People who work in corporate finance might be responsible for analyzing financial statements, creating...
Highest Paying Areas of Finance
Investment Banking: Investment bankers help companies raise money by underwriting and selling securities like stocks and bonds. They also provide advice on mergers and acquisitions. Investment banking is known for paying very high salaries, especially to entry-level...