Prereq to Rosenbaum and Pearl?

As a complete newbie to all finance, would I be able to understand Rosenbaum and pearl Investment banking textbook or do I need prior knowledege? If so, how should I get this knowledge?

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Comments (15)

Nov 19, 2017

Read an accounting textbook first. I personally really liked "How to Read a Financial Report" by Tracy & Tracy, but there are lots of good ones out there. Having a good understanding of accounting will 1) make R&P way easier to understand and 2) allow you to apply the concepts from R&P to other models and other companies.

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Nov 19, 2017

thanks, would you also recommend that i read a corporate finance textbook too or is that unecesaey after i learn accounting?

Nov 19, 2017

corporate finance - Jonathan B. Berk, Peter M. DeMarzo
-my personal favorite

Nov 19, 2017

would this be a good choice to self study for a beginner after learning accounting?

Nov 19, 2017

Berk is my favorite as well. It's a bit newer than the "finance bibles" out there but I love that they emphasize recurring themes in finance (law of one price, etc.) to give you a good holistic view.

Definitely recommend, and perfect for self-study as the material isn't too difficult.

Nov 19, 2017

Lot's of free accounting resources online too, like learnaccountingforfree.com.

Gimme the loot

Nov 19, 2017
Nov 19, 2017

1. A good understanding of financial accounting is helpful, but not necessary. Investopedia is your friend.
2. With a 3 hour commitment per day, one could finish the book in about a week. Don't worry about going too deep into the excel models for interview purposes, just make sure you understand the concepts.

Nov 19, 2017
thezone:

1. A good understanding of financial accounting is helpful, but not necessary. Investopedia is your friend.

2. With a 3 hour commitment per day, one could finish the book in about a week. Don't worry about going too deep into the excel models for interview purposes, just make sure you understand the concepts.

For accounting, apart from investopedia, I was considering buying 'introduction to accounting for finance' by adkins matchette and toy. Any advice on that front or any other book to master accounting?

Nov 19, 2017

Though I'm not aware of the quality of the book you mentioned, I would personally recommend Financial Accounting by Libby, Libby, and Short. I took an undergrad-only section at Chicago Booth, and that's the book that they use. In my opinion, it was very thorough and intuitive.

Nov 19, 2017
thezone:

Though I'm not aware of the quality of the book you mentioned, I would personally recommend Financial Accounting by Libby, Libby, and Short. I took an undergrad-only section at Chicago Booth, and that's the book that they use. In my opinion, it was very thorough and intuitive.

Thanks for sharing that! Also, appreciate the detail you put into the time commitment required for Rosenbaum. I guess I'll have to ask around a bit more before I begin a text on accounting. I also think I'm probably displaying self destructive behaviour wherein I keep asking for a prep book for mastering the target book. But I'll definitely look at Libby. Thanks again.

Nov 19, 2017

You could easily get through it in a week. The book is great.

Just to let you know, though, Rosenbaum and Pearl can be a little dense at times. I think I remember it walking through the filings for an IPO, for example. No interviewer is going to ask you some of that, so make sure you nail the concepts rather than the parts of an s-1 filing.

Nov 19, 2017

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