Equity Research Interview - Technical Questions

For ER, I would say stick with fundamental analysis concepts and don't worry too much about the quant stuff. You'll learn the equity valuation process on the job, and often times the more important part is the report writing/synthesis aspect.

focus on classes that are heavy on investment analysis and or classes where there is emphasis on projects/case studies and involve a lot critical thinking/writing.

take the CFA level 1 during this year as well

you're not going to need to know how to price options using black scholes for a fundamental equity research position. but i don't know how many accounting and valuation classes are offered at your school

what's the possibility of moving from ER to another role at the same bank/different one (i.e. move to lev fin, ibanking in same industry group as ER coverage area, etc.)?

Thank you for all the responses.

Jaclee, I think I’m ok in the report writing/synthesis aspect, since this has been one of my strong areas since high school (as opposed to complex math).

Cornelius, thanks for the CFA suggestion. I already have the Schweser notes that I read when I have time, but my degree takes too much time, so I don’t know if I can prepare properly for May.

Monument Man, we don’t have that many accounting and valuation… I’m currently taking a module which follows McKinsey’s book “Valuation: Measuring and managing the value of companies” and another module focusing on the differences between US GAAP and IFRS.

Eresearcher, I’m just a student but I would say you could move to corporate finance although it may not be easy. Another possibility would be moving to the buyside. If you want more varied potential exit plans I guess it would be better to start in the Investment Banking division, for example.