by the finance major | Feb 19, 2023 | Career, Education
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 generating revenue for the firm and often involve working closely with clients to help them make investment decisions or execute transactions.
Front office roles are often seen as prestigious and highly competitive, as they can be very lucrative and offer a lot of opportunities for professional development. However, they can also be high-pressure and require a lot of hard work and long hours. Some examples of front office roles in finance include:
- Sales: Sales professionals work with clients to identify their needs and sell them financial products like stocks, bonds, and derivatives.
- Trading: Traders buy and sell financial assets in order to make a profit for their firm or their clients.
- Investment banking: Investment bankers help companies raise money by underwriting and issuing securities like stocks and bonds, and they also provide advisory services for mergers and acquisitions, corporate finance, and other strategic transactions.
Front office roles are critical to the success of financial firms, and they are a key area of focus for many professionals in the industry.
For an explanation of Back Office vs. Middle Office, click here.
by the finance major | Feb 19, 2023 | Career, Education
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 investment research, underwriting, and market-making. Essentially, the Sell Side helps clients buy and sell financial assets.
The Buy Side, on the other hand, refers to institutional investors like pension funds, hedge funds, and private equity firms that buy and hold financial assets. These investors are looking to generate returns on their investments by buying and holding securities like stocks, bonds, and other financial instruments.
So, to summarize, the Sell Side helps clients buy and sell financial assets, while the Buy Side actually buys and holds those assets in order to generate returns for their investors.
Many professionals work on both sides over the course of their careers.
by the finance major | Feb 19, 2023 | Career
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, including audit, tax, consulting, and advisory services to clients in various industries.
While all four firms provide similar services, there are some slight differences between them. For example:
- Deloitte is known for its consulting services and its work with large public sector organizations, including governments and non-profits.
- PwC is known for its expertise in tax and audit services and has a large presence in the financial services industry.
- EY is known for its global reach and its work in areas like assurance, tax, transaction, and advisory services.
- KPMG is known for its audit and tax services and has a strong presence in the financial services and healthcare industries.
Overall, the differences between the Big 4 firms are subtle, and they are all highly regarded in the accounting and consulting industries. Many people choose to work at these firms early in their careers as a way to gain public accounting experience for the CPA designation, as well to build their professional networks.
Click here for more information about the CPA Exam.
Check out the Resources page for CPA Exam prep!
by the finance major | Feb 19, 2023 | Career
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 finance majors in the United States in 2021 was $61,600 per year.
Of course, starting salaries can vary depending on the specific industry and type of finance role. For example, finance majors working in investment banking or private equity may earn significantly higher salaries than those working in accounting or financial planning.
Additionally, starting salaries may also vary depending on the geographic location of the job. Salaries tend to be higher in major financial centers such as New York City or San Francisco, compared to other areas of the country.
It’s worth noting that salaries can also increase significantly as a finance professional gains more experience and takes on higher-level roles within their organization. Many finance professionals are also eligible for bonuses, which can be a significant part of their compensation package.
Overall, while the average starting salary for finance majors can provide a general idea of what to expect, it’s important to keep in mind that salaries can vary widely depending on the specific circumstances.
Check out some of the highest-paying careers in finance here.
by the finance major | Feb 19, 2023 | Career
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 career in finance is strong analytical skills. This means that you are able to analyze and interpret financial data, and use it to make informed decisions.
2. Attention to detail: Finance involves a lot of numbers and details, so it’s important to have a high level of attention to detail. This means that you can spot errors and inconsistencies in financial data, and that you are able to work accurately and efficiently.
3. Communication skills: Finance professionals need to be able to communicate complex financial concepts in a clear and concise way. This means that you should be able to explain financial data to people who may not have a background in finance.
4. Problem-solving skills: Finance involves a lot of problem-solving, whether it’s figuring out how to allocate resources, how to reduce costs, or how to maximize profits. Strong problem-solving skills are essential in order to be successful in finance.
5. Strong work ethic: Finance can be a demanding and fast-paced field, so it’s important to have a strong work ethic. This means that you are willing to put in the time and effort required to meet deadlines and achieve your goals.
6. Integrity: Finance professionals often have access to sensitive financial information, so it’s important to have a high level of integrity and ethical standards. This means that you are honest, trustworthy, and committed to doing what is right.
Overall, a successful career in finance requires a combination of technical skills, analytical abilities, and strong personal qualities.
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!
