Two S&T related Questions (DCF)

Hi Guys,

I have two questions for the fellow monkeys. Forgive me if they sound silly but I have googled the following, things but heard conflicting results. Would really appreciate your opinions.

1) Do sell-side traders frequently use DCF analysis to ever evaluate a stock? Is it worth knowing about DCF for a S&T interview/ application?

2) Cover letter- In your opinion how many words should be the max limit ? Is 500 words too much ?

Best regards

3 Comments
 

1) On the sell side? no, its much more short term and execution oriented than that. I started on a single stock options desk and spent some time learning otuside of work about fundamental analysis, but all the senior traders told me that "its good to know, but it wont make you a better trader on the sellside".

2) Not more than one page (and thats including properly formatted, so including "To whom it may concern" and "Sincerely" and gaps in between etc, when you zoom out it should look aesthetic).

 
Best Response

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