6 answers
Adilay
Student
Elk River, Minnesota
25
Questions
Asked
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What is it like working in finance?
What are typical day-to-day tasks for someone who works in finance?
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6 answers
Alan V
Investment Professional
2
Answers
New York, New York
Updated
Alan’s Answer
Hi - it really depends on the role. I'll give some examples from my professional experience and hopefully that helps! Feel free to ask any additional questions.
My first role was in sell-side investment banking which involves advising owners of companies that are looking to sell to a new owner. As a sell-side investment banking analyst, the job involves a multitude of tasks around (i) winning new business (e.g. pitching to new clients) and (ii) executing on sell-side mandates. In the first scenario, you are meeting with owners and management teams and creating memos to convince them why your firm is best positioned to maximize shareholder value in a sale. This memo would usually encompass your understanding of the business, thoughts on prospective buyers that make the most sense, and valuation expectations for the business. As an analyst, this means spending significant amount of time and quantitative and qualitative aspects of the business, modelling historical and projected financials, and coming up with a basis for valuation. In the execution part of the role, alot of the work is similar but in more detail, where you present the business to buyers (often with a very detailed memo), prepare management for meetings with buyers, and create a dataroom with all the relevant info for buyers to make their decision.
My second role was in private equity which is the "buy-side" perspective of the above. In this case, you are deploying capital with the expectation of generating returns on that capital. In this case, you are doing a lot of the same work but building projections based on the assumption that you will own the business and can implement strategic initiatives to influence outcomes. I would say this is the key differentiator and hence why there is a lot more focus on operations/strategy from the buy-side perspective vs. the sell-side.
Lastly, in my current role in credit, we focus on the downside. So similar to the "buy-side" private equity role, we invest in companies but from the lens of a creditor. Meaning that we are focused less on what can go right but more on what can go wrong. Since creditors do not largely participate in success of large outcomes (e.g. equity investors own shares in a company that can appreciate whereas creditors are mostly promised a return of principal), the analysis is much more focused on collateral and cash flow in "downside scenarios".
Professionals in these fields spend a lot of time understanding the drivers of a business and modelling various scenarios to assess potential outcomes. It's a mix of a qualitative and quantitative skills and ideally you should really enjoy learning about companies to thrive in this sort of environment.
My first role was in sell-side investment banking which involves advising owners of companies that are looking to sell to a new owner. As a sell-side investment banking analyst, the job involves a multitude of tasks around (i) winning new business (e.g. pitching to new clients) and (ii) executing on sell-side mandates. In the first scenario, you are meeting with owners and management teams and creating memos to convince them why your firm is best positioned to maximize shareholder value in a sale. This memo would usually encompass your understanding of the business, thoughts on prospective buyers that make the most sense, and valuation expectations for the business. As an analyst, this means spending significant amount of time and quantitative and qualitative aspects of the business, modelling historical and projected financials, and coming up with a basis for valuation. In the execution part of the role, alot of the work is similar but in more detail, where you present the business to buyers (often with a very detailed memo), prepare management for meetings with buyers, and create a dataroom with all the relevant info for buyers to make their decision.
My second role was in private equity which is the "buy-side" perspective of the above. In this case, you are deploying capital with the expectation of generating returns on that capital. In this case, you are doing a lot of the same work but building projections based on the assumption that you will own the business and can implement strategic initiatives to influence outcomes. I would say this is the key differentiator and hence why there is a lot more focus on operations/strategy from the buy-side perspective vs. the sell-side.
Lastly, in my current role in credit, we focus on the downside. So similar to the "buy-side" private equity role, we invest in companies but from the lens of a creditor. Meaning that we are focused less on what can go right but more on what can go wrong. Since creditors do not largely participate in success of large outcomes (e.g. equity investors own shares in a company that can appreciate whereas creditors are mostly promised a return of principal), the analysis is much more focused on collateral and cash flow in "downside scenarios".
Professionals in these fields spend a lot of time understanding the drivers of a business and modelling various scenarios to assess potential outcomes. It's a mix of a qualitative and quantitative skills and ideally you should really enjoy learning about companies to thrive in this sort of environment.
Kimberly El Boury
Financial Management
1
Answer
Fairfax, Virginia
Updated
Kimberly’s Answer
Hello Adilay!
My daily tasks in the Finance sector, specifically in Budgeting and Forecasting, are a blend of immediate "fire drills" and routine weekly, monthly, quarterly, and annual reporting duties. I collaborate with a diverse range of stakeholders from purchasing, sourcing, accounting, engineering, and IT departments.
The tools of my trade include G suite, Excel, PowerPoint, and SAP applications, and I stay connected through Slack, email, and video conferencing. I genuinely enjoy the work I do as it offers me a chance to learn from a variety of different groups and understand how to accomplish the tasks at hand efficiently.
I also interact with employees at different levels within the company, helping to expedite issues and find solutions. Every day, I strive to push beyond my designated role, eager to learn new things and showcase my leadership skills. This continuous learning and growth is what makes my work truly fulfilling.
My daily tasks in the Finance sector, specifically in Budgeting and Forecasting, are a blend of immediate "fire drills" and routine weekly, monthly, quarterly, and annual reporting duties. I collaborate with a diverse range of stakeholders from purchasing, sourcing, accounting, engineering, and IT departments.
The tools of my trade include G suite, Excel, PowerPoint, and SAP applications, and I stay connected through Slack, email, and video conferencing. I genuinely enjoy the work I do as it offers me a chance to learn from a variety of different groups and understand how to accomplish the tasks at hand efficiently.
I also interact with employees at different levels within the company, helping to expedite issues and find solutions. Every day, I strive to push beyond my designated role, eager to learn new things and showcase my leadership skills. This continuous learning and growth is what makes my work truly fulfilling.
Gregory G
Hedge Fund Risk Management
1
Answer
New York, New York
Updated
Gregory’s Answer
Working in Finance can take a variety of forms and provide a diverse experience. For example, Investment oriented financial careers tend to be highly quantitative and complex in nature within a high paced, competitive environment and compensated accordingly. However, accounting related financial careers tend to be cyclical in nature and process / rules based with strict deadlines and can cross industries. Operations related roles tend to be a cross of the prior two examples (i.e.. high paced, complex in nature, yet process / rules based with strict deadlines. Therefore, the experience tends to depend on the role.
Chosen Osarodion Iyen
Maintenance
67
Answers
Benin City, Edo, Nigeria
Updated
Chosen Osarodion’s Answer
Working in finance can vary greatly depending on the specific role, but generally, it involves managing and analyzing financial data, advising clients or businesses, and making decisions related to investments, budgeting, or financial strategy. Here’s what it’s like:
### **Typical Day-to-Day Tasks**:
1. **Financial Analysis**: Reviewing financial reports, market trends, and company performance to make data-driven decisions.
2. **Budgeting & Forecasting**: Creating and managing budgets for companies, individuals, or departments, as well as forecasting future financial needs or performance.
3. **Investment Management**: For roles like investment banking or portfolio management, you’ll research and recommend investments, track performance, and manage risks.
4. **Client Interaction**: Many finance professionals work with clients, providing financial advice, managing portfolios, or discussing financial plans and goals.
5. **Report Generation**: Preparing financial reports, models, or presentations to communicate performance and strategy to clients, stakeholders, or leadership teams.
6. **Compliance & Risk Management**: Ensuring financial transactions and practices comply with legal regulations, and assessing financial risks to minimize losses.
### **Work Environment**:
- **Fast-Paced**: Deadlines are often tight, especially in roles like investment banking or trading, where decisions are made quickly.
- **Collaborative**: Many finance jobs involve teamwork, whether it’s working within a finance department, consulting with clients, or collaborating with other divisions.
- **Detail-Oriented**: The field requires a high level of accuracy, as financial mistakes can have serious implications for businesses or individuals.
### **Challenges**:
- **High Pressure**: Finance roles often come with high expectations and can involve long hours, particularly in fields like investment banking or financial analysis.
- **Constant Learning**: The financial world is dynamic, with markets, laws, and technologies constantly changing, so you’ll need to stay updated.
Overall, finance offers opportunities for growth, intellectual challenges, and potentially high pay, but it also requires focus, adaptability, and resilience.
### **Typical Day-to-Day Tasks**:
1. **Financial Analysis**: Reviewing financial reports, market trends, and company performance to make data-driven decisions.
2. **Budgeting & Forecasting**: Creating and managing budgets for companies, individuals, or departments, as well as forecasting future financial needs or performance.
3. **Investment Management**: For roles like investment banking or portfolio management, you’ll research and recommend investments, track performance, and manage risks.
4. **Client Interaction**: Many finance professionals work with clients, providing financial advice, managing portfolios, or discussing financial plans and goals.
5. **Report Generation**: Preparing financial reports, models, or presentations to communicate performance and strategy to clients, stakeholders, or leadership teams.
6. **Compliance & Risk Management**: Ensuring financial transactions and practices comply with legal regulations, and assessing financial risks to minimize losses.
### **Work Environment**:
- **Fast-Paced**: Deadlines are often tight, especially in roles like investment banking or trading, where decisions are made quickly.
- **Collaborative**: Many finance jobs involve teamwork, whether it’s working within a finance department, consulting with clients, or collaborating with other divisions.
- **Detail-Oriented**: The field requires a high level of accuracy, as financial mistakes can have serious implications for businesses or individuals.
### **Challenges**:
- **High Pressure**: Finance roles often come with high expectations and can involve long hours, particularly in fields like investment banking or financial analysis.
- **Constant Learning**: The financial world is dynamic, with markets, laws, and technologies constantly changing, so you’ll need to stay updated.
Overall, finance offers opportunities for growth, intellectual challenges, and potentially high pay, but it also requires focus, adaptability, and resilience.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
5724
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Adilay!
What is it like working in finance?
Working in finance can be both rewarding and challenging, depending on the specific role and the environment in which one operates. The finance sector encompasses a wide range of careers, including investment banking, financial analysis, accounting, risk management, and personal financial advising. Each of these roles has its own unique characteristics, but there are common themes that define the experience of working in finance.
Fast-Paced Environment: The finance industry is known for its fast-paced nature. Professionals often work under tight deadlines and must make quick decisions based on real-time data. This can lead to a high-pressure environment where performance is closely monitored.
Analytical Skills: A significant part of working in finance involves analyzing data to make informed decisions. Whether it’s evaluating investment opportunities or assessing financial risks, strong analytical skills are essential. Employees often use various financial models and tools to interpret complex data sets.
Team Collaboration: Many finance roles require collaboration with other professionals, such as accountants, analysts, and clients. Effective communication skills are crucial for conveying complex financial information clearly and concisely.
Continuous Learning: The finance industry is constantly evolving due to changes in regulations, market conditions, and technology. Professionals must stay updated on industry trends and may need to pursue additional certifications or education throughout their careers.
Career Advancement Opportunities: Finance offers numerous pathways for career advancement. High performers may have opportunities to move into leadership positions or specialize in niche areas within the field.
Compensation: Generally speaking, careers in finance tend to offer competitive salaries and bonuses compared to many other industries. However, this can vary widely based on the specific role and geographic location.
Work-Life Balance: Depending on the specific job within finance, work-life balance can be a concern. Investment banking roles often demand long hours, while positions like financial advising may offer more flexibility.
What are typical day-to-day tasks for someone who works in finance?
The day-to-day tasks of someone working in finance can vary significantly based on their specific role within the industry; however, several common activities can be identified across different positions:
Data Analysis: Finance professionals frequently analyze financial statements, market trends, and economic indicators to inform decision-making processes.
Financial Reporting: Preparing reports that summarize financial performance is a key task for many roles within finance—this includes creating budgets, forecasts, and variance analyses.
Client Interaction: For those in client-facing roles such as financial advisors or investment bankers, regular meetings with clients to discuss their portfolios or investment strategies are essential.
Researching Investments: Investment analysts spend considerable time researching potential investments by reviewing company performance metrics and market conditions.
Risk Assessment: Risk managers evaluate potential risks associated with investments or business operations by conducting stress tests and scenario analyses.
Compliance Monitoring: Ensuring adherence to regulatory requirements is critical; this involves reviewing transactions for compliance with laws and internal policies.
Collaboration with Teams: Many tasks require collaboration with colleagues from various departments (e.g., legal teams for compliance issues or marketing teams for product launches).
Continuous Education/Training: Staying current with new regulations or technologies through training sessions or professional development courses is also part of daily life in finance.
In summary, working in finance involves a combination of analytical tasks, client interactions, compliance monitoring, teamwork, and continuous learning—all set against a backdrop of a fast-paced environment that rewards diligence and skillful decision-making.
Top 3 Authoritative Sources Used:
Investopedia: A comprehensive resource providing detailed explanations about various aspects of finance including career paths within the industry.
U.S. Bureau of Labor Statistics (BLS): Offers official statistics regarding employment trends in various sectors including detailed descriptions of job responsibilities within the finance industry.
Harvard Business Review (HBR): Publishes articles related to management practices within the finance sector as well as insights into workplace dynamics that affect professionals working in this field.
Probability the answer is correct: 95%
God Bless You!
JC.
What is it like working in finance?
Working in finance can be both rewarding and challenging, depending on the specific role and the environment in which one operates. The finance sector encompasses a wide range of careers, including investment banking, financial analysis, accounting, risk management, and personal financial advising. Each of these roles has its own unique characteristics, but there are common themes that define the experience of working in finance.
Fast-Paced Environment: The finance industry is known for its fast-paced nature. Professionals often work under tight deadlines and must make quick decisions based on real-time data. This can lead to a high-pressure environment where performance is closely monitored.
Analytical Skills: A significant part of working in finance involves analyzing data to make informed decisions. Whether it’s evaluating investment opportunities or assessing financial risks, strong analytical skills are essential. Employees often use various financial models and tools to interpret complex data sets.
Team Collaboration: Many finance roles require collaboration with other professionals, such as accountants, analysts, and clients. Effective communication skills are crucial for conveying complex financial information clearly and concisely.
Continuous Learning: The finance industry is constantly evolving due to changes in regulations, market conditions, and technology. Professionals must stay updated on industry trends and may need to pursue additional certifications or education throughout their careers.
Career Advancement Opportunities: Finance offers numerous pathways for career advancement. High performers may have opportunities to move into leadership positions or specialize in niche areas within the field.
Compensation: Generally speaking, careers in finance tend to offer competitive salaries and bonuses compared to many other industries. However, this can vary widely based on the specific role and geographic location.
Work-Life Balance: Depending on the specific job within finance, work-life balance can be a concern. Investment banking roles often demand long hours, while positions like financial advising may offer more flexibility.
What are typical day-to-day tasks for someone who works in finance?
The day-to-day tasks of someone working in finance can vary significantly based on their specific role within the industry; however, several common activities can be identified across different positions:
Data Analysis: Finance professionals frequently analyze financial statements, market trends, and economic indicators to inform decision-making processes.
Financial Reporting: Preparing reports that summarize financial performance is a key task for many roles within finance—this includes creating budgets, forecasts, and variance analyses.
Client Interaction: For those in client-facing roles such as financial advisors or investment bankers, regular meetings with clients to discuss their portfolios or investment strategies are essential.
Researching Investments: Investment analysts spend considerable time researching potential investments by reviewing company performance metrics and market conditions.
Risk Assessment: Risk managers evaluate potential risks associated with investments or business operations by conducting stress tests and scenario analyses.
Compliance Monitoring: Ensuring adherence to regulatory requirements is critical; this involves reviewing transactions for compliance with laws and internal policies.
Collaboration with Teams: Many tasks require collaboration with colleagues from various departments (e.g., legal teams for compliance issues or marketing teams for product launches).
Continuous Education/Training: Staying current with new regulations or technologies through training sessions or professional development courses is also part of daily life in finance.
In summary, working in finance involves a combination of analytical tasks, client interactions, compliance monitoring, teamwork, and continuous learning—all set against a backdrop of a fast-paced environment that rewards diligence and skillful decision-making.
Top 3 Authoritative Sources Used:
Investopedia: A comprehensive resource providing detailed explanations about various aspects of finance including career paths within the industry.
U.S. Bureau of Labor Statistics (BLS): Offers official statistics regarding employment trends in various sectors including detailed descriptions of job responsibilities within the finance industry.
Harvard Business Review (HBR): Publishes articles related to management practices within the finance sector as well as insights into workplace dynamics that affect professionals working in this field.
Probability the answer is correct: 95%
God Bless You!
JC.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
5724
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Adilay!
Classes and Jobs for a Career in Finance
1. Recommended High School Classes
To prepare for a career in finance, it is essential to take classes that build a strong foundation in relevant subjects. Here are some recommended courses:
Mathematics: Courses such as Algebra, Geometry, and Calculus are crucial. A solid understanding of math is vital for analyzing financial data and making informed decisions.
Economics: Taking both Microeconomics and Macroeconomics will provide insights into how economies function, the principles of supply and demand, and the impact of government policies on markets.
Business Studies: Classes that cover basic business principles, accounting, and finance can be very beneficial. Understanding how businesses operate financially is key to a career in finance.
Statistics: Knowledge of statistics is important for data analysis, risk assessment, and making predictions based on historical data.
Computer Science/Information Technology: Familiarity with spreadsheets (like Microsoft Excel) and financial modeling software is increasingly important in finance roles.
Communication Skills: Courses in English or public speaking can help develop your ability to communicate complex financial concepts clearly and effectively.
2. Extracurricular Activities
Engaging in extracurricular activities can also enhance your profile:
Finance or Investment Clubs: Joining or starting a finance club at school can provide practical experience through competitions like stock market simulations or investment challenges.
Debate Team: Participating in debate can improve your analytical thinking skills and ability to articulate arguments—both valuable skills in finance.
Volunteer Work: Consider volunteering for organizations that manage budgets or finances; this could include non-profits or community organizations.
3. Job Opportunities and Internships
While you may be limited by age restrictions for formal employment, there are still opportunities to gain experience:
Part-Time Jobs: Look for part-time positions at local banks or credit unions. Even entry-level roles can provide exposure to financial services.
Internships: Some companies offer internships specifically designed for high school students interested in finance. These positions may involve assisting with administrative tasks while providing insight into the industry.
Networking Opportunities: Attend local business events or workshops related to finance. Networking with professionals can lead to mentorship opportunities or job shadowing experiences.
Online Courses/Certifications: Consider enrolling in online courses related to finance through platforms like Coursera or Khan Academy. Some certifications might also be available that could enhance your resume.
In summary, focusing on mathematics, economics, business studies, statistics, computer science, and communication skills will provide a strong academic foundation for a future career in finance. Engaging in relevant extracurricular activities and seeking out job opportunities will further enhance your experience as you prepare for college and beyond.
Probability the answer is correct: 95%
God Bless You!
JC.
Classes and Jobs for a Career in Finance
1. Recommended High School Classes
To prepare for a career in finance, it is essential to take classes that build a strong foundation in relevant subjects. Here are some recommended courses:
Mathematics: Courses such as Algebra, Geometry, and Calculus are crucial. A solid understanding of math is vital for analyzing financial data and making informed decisions.
Economics: Taking both Microeconomics and Macroeconomics will provide insights into how economies function, the principles of supply and demand, and the impact of government policies on markets.
Business Studies: Classes that cover basic business principles, accounting, and finance can be very beneficial. Understanding how businesses operate financially is key to a career in finance.
Statistics: Knowledge of statistics is important for data analysis, risk assessment, and making predictions based on historical data.
Computer Science/Information Technology: Familiarity with spreadsheets (like Microsoft Excel) and financial modeling software is increasingly important in finance roles.
Communication Skills: Courses in English or public speaking can help develop your ability to communicate complex financial concepts clearly and effectively.
2. Extracurricular Activities
Engaging in extracurricular activities can also enhance your profile:
Finance or Investment Clubs: Joining or starting a finance club at school can provide practical experience through competitions like stock market simulations or investment challenges.
Debate Team: Participating in debate can improve your analytical thinking skills and ability to articulate arguments—both valuable skills in finance.
Volunteer Work: Consider volunteering for organizations that manage budgets or finances; this could include non-profits or community organizations.
3. Job Opportunities and Internships
While you may be limited by age restrictions for formal employment, there are still opportunities to gain experience:
Part-Time Jobs: Look for part-time positions at local banks or credit unions. Even entry-level roles can provide exposure to financial services.
Internships: Some companies offer internships specifically designed for high school students interested in finance. These positions may involve assisting with administrative tasks while providing insight into the industry.
Networking Opportunities: Attend local business events or workshops related to finance. Networking with professionals can lead to mentorship opportunities or job shadowing experiences.
Online Courses/Certifications: Consider enrolling in online courses related to finance through platforms like Coursera or Khan Academy. Some certifications might also be available that could enhance your resume.
In summary, focusing on mathematics, economics, business studies, statistics, computer science, and communication skills will provide a strong academic foundation for a future career in finance. Engaging in relevant extracurricular activities and seeking out job opportunities will further enhance your experience as you prepare for college and beyond.
Probability the answer is correct: 95%
God Bless You!
JC.