Job Responsibilities
- Building and maintaining company models - 35% of time
- Preparing research notes, stock initiation reports and industry
research reports. - 25%
- Conducting extensive independent analysis of industry issues
and emerging trends - 20%
- Communicating with institutional and retail clients and
internal sales and trading force - 20%
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Job Requirements
There's multiple ways to get into equity research. If you're
coming out with an undergrad business degree, such as myself, the
best route is to get an internship your junior year in research,
work hard that summer and get a full-time offer upon graduation.
If you're not in a business program, but you're completing a
major where you'll gain specific industry knowledge (i.e. pharma,
chemicals) you should also have some understanding of
business/economics to be considered. The only caveat is, there
has to be an opening in a group that covers an industry of your
expertise.
If you're an MBA candidate, I'd suggest the same thing, get an
internship one year and try to get a full-time offer upon
completion.
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Uppers
- Gain extensive industry knowledge and financial skills in a short period of
time
- Exposure to internal sales/trading force and institutional clients/hedge funds
- Ability to work independently within a small team
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Downers
- Very bureacratic and many legal hurdles, especially when
working for a bulgebracket firm, due to banking/research Chinese
Wall settlement after the scandals awhile back
- Huge amount of number crunching required to build and maintain
models
- Little people contact outside of your team, which is anywhere
from 2-6 members
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Lifestyle
Make sure you enjoy the industry, its companies, finanical
statement analysis and the markets. If you don't have a passion
for these things you will not enjoy this job.
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Compensation
Typical 1st year base is 55K with bonus potential of 20%-45%
depending on yours and the banks performance. Base is bumped
about 5K each year, but bonus could increase signifcantly as you
move up and perform well. 3rd associates or 1st year MBAs make a
base of 100K and can expect bonuses of 50K or higher.
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Advice to Jobseekers
Make sure you enjoy the industry, its companies, finanical
statement analysis and the markets. If you don't have a passion
for these things you will not enjoy this job.
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