interview question:why equity research?

haha, and i ain’t no lottery winner…
for real man, can anyone share some ideas?
 
just say the detective nature of the work intrigues you, where u can become an expert in a given sector, and u would learn key finance skills that are applicable in everyday life, and u would have an impact on the economy everytime u issue a report…
 
xiyiziLi Wrote:
——————————————————-
> what’s a good responce for this question?
it pays better then my unemployment check.
 
“Some people look at a challenge and ask, ‘Why?’ I like to look at a challenge and ask, ‘Why not?’”
The reality is that you just need to look at equity versus something else, and give a reason that you like equity research - it doesn’t even have to say anything bad about other areas. The something else is usually “fixed income,” but it could be fund research, commodity research, currencies research.
In equity research, you really do analyze the specifics of individual companies to figure out if the security is appropriately priced. Often you are evaluating management effectiveness, strategic plans, and whether the price appropriately compensates for risk and growth expectations. So the distinguishing thing about equities research is that it really ends up being judgements about specific companies and their strategies (unless you’re doing quant equity work, in which you’ll be trying to figure out if models are appropriately specified). What management does affects equity much more directly than it does debt.
In other markets like fixed income, currencies, commodities, etc., you tend to be looking at more macro factors - interest rates, inflation, industry trends, etc, although in fixed income, you’ll also be assessing creditworthiness which is company specific.
 
because numi already has the best job (master of the universe).
really though… this isn’t a trick question or some sort of brain teaser. if you are interviewing for the position, and you dont know why you want the job….
this thread is almost (almost) as good as the “how do i check myspace when IT blocked it” thread.
 
“really though… this isn’t a trick question or some sort of brain teaser. if you are interviewing for the position, and you dont know why you want the job…. ”
Thanks for beating me to it.
I think the real reason is that the original poster wants the job to make alot of money or some other reason that would make a poor interview answer. Guess why it makes a poor interview answer? Just something to think about.
 
bchadwick Wrote:
——————————————————-
> “Some people look at a challenge and ask, ‘Why?’
> I like to look at a challenge and ask, ‘Why
> not?’”
>
> The reality is that you just need to look at
> equity versus something else, and give a reason
> that you like equity research - it doesn’t even
> have to say anything bad about other areas. The
> something else is usually “fixed income,” but it
> could be fund research, commodity research,
> currencies research.
>
> In equity research, you really do analyze the
> specifics of individual companies to figure out if
> the security is appropriately priced. Often you
> are evaluating management effectiveness, strategic
> plans, and whether the price appropriately
> compensates for risk and growth expectations. So
> the distinguishing thing about equities research
> is that it really ends up being judgements about
> specific companies and their strategies (unless
> you’re doing quant equity work, in which you’ll be
> trying to figure out if models are appropriately
> specified). What management does affects equity
> much more directly than it does debt.
>
> In other markets like fixed income, currencies,
> commodities, etc., you tend to be looking at more
> macro factors - interest rates, inflation,
> industry trends, etc, although in fixed income,
> you’ll also be assessing creditworthiness which is
> company specific.
This is a very good response and I’d like to highlight it. Geez, I should have said something like this when I was interviewing for the sell-side…then I’d really be a rock-staaaaaaah.
But seriously, well done bchadwick, and for those of you interviewing for potential research positions, do consider saying something to this effect. Also talk about how you enjoy the capital markets, want to understand what drives investor sentiment in the equity space, want to learn about how industry trends translate themselves into market trends, wanting the opportunity to look at a company from the perspective of an investor/financier, etc…those are all good reasons.
 
1). Pick up valuation skill – How much something is worth?
2). Learn and be challenged everyday – dynamic market
3). Become an industry expert
4). PM wannabe
5). Move into HF
 
stylemog Wrote:
——————————————————-
> because i’m too lazy to work banking hours.
So everyone in research is lazy?
…
 
Quite frankly,
I don’t know why anybody would really want to move into equity research. Equities are not too exciting. I think that most people try and use equity research as either a stepping stone into something more interesting - or they simply didn’t get a better interview for something else. Or am I mistaken?
 
jalmy8 Wrote:
——————————————————-
> Quite frankly,
>
> I don’t know why anybody would really want to move
> into equity research. Equities are not too
> exciting. I think that most people try and use
> equity research as either a stepping stone into
> something more interesting - or they simply didn’t
> get a better interview for something else. Or am
> I mistaken?
do you work in finance? what’s your frame of comparison here? your observation that equities “are not too exciting” might be a legitimate one, but your reasons sound like they come from someone outside the industry
 
jeff_s Wrote:
——————————————————-
> stylemog Wrote:
> ————————————————–
> —–
> > because i’m too lazy to work banking hours.
>
> So everyone in research is lazy?
>
>
> …
laziness in a relative sense. lazy relative to banking really doesn’t mean anything in absolute terms.
 
jeff_s Wrote:
——————————————————-
> stylemog Wrote:
> ————————————————–
> —–
> > because i’m too lazy to work banking hours.
>
> So everyone in research is lazy?
>
>
> …
and i said because I’M too lazy to work in banking. i made no generalizations about others in research.
 
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