Business Investment

Before going for an investment banking interview, go through the financial profiles of the bulge bracket firms and identify the highlights. Be aware of the rankings of the investment banking firms in various segments, such as advisory services or asset management. Stock movements are often a reaction to the latest happenings and have less to do with the company?s fundamentals. Study the recent stock price movements and be ready to answer questions related to a sharp movement in the share price or jumps in trading volume.

To answer this question perfectly, you would have to go back to your books and understand the concepts that were taught to you in business school. Make sure that you put across the point that being good with numbers, being in the knowledge of current and past market status, and having a good financial strategy that is unfailing are some of the most important qualities for a career in investment making.

The quality of forecasting the future market and the capacity to analyze and mitigate the risk involved and finally to have good returns in hand .

► A) Game theory emphasizes short-term tactics to be employed in competitive strategies rather than a long-term strategy.

► B) Game theory is about thinking how competitors will respond in both the short term and the long term.

► C) Games assume competition between different players so game theory is especially useful in describing how competition occurs.

► D) Given the inter-dependence of competitors, game theory helps an understanding of how the decisions of one competitor affects upon another.

B) Game theory is about thinking how competitors will respond in both the short term and the long term

The recession and the stock market fall are still fresh in everyone?s mind. And being a person in the financial business, you are bound to experiences during the stock market fall. This question is asked not as much as to know whether you can handle such situations.

The best way to answer this question is to be truthful about any situation that you came across as the stock market fell.

► A) Hyper-competitive strategies are about how to compete in fast changing business environments.

► B) Innovation in terms of bases of competitive strategy

► C) Hyper-competitive strategies are about building bases of sustainable differentiation.

► D) Hyper-competitive strategies acknowledge the bases of competitive advantage may not be sustainable and that disruption of the status quo may be important.

D) Hyper-competitive strategies acknowledge the bases of competitive advantage may not be sustainable and that disruption of the status quo may be important

A) An organization achieves a proprietary position in its industry

Ethics, trust and integrity are often challenged in an investment banking job. Look at the sub prime crisis, the near collapse of the mortgage giant, Fannie Mae, and the restatement of financial accounts of several investment banking firms in recent years. It is often unethical (or even unlawful) practices that are the main contributors to situations like these. Discuss an instance when you had to make an ethical decision ? what did you take into consideration? How did you finally come to a decision? These are insights into how you work and what the firm can expect from you in tough situations.

The first step is to determine what you want to achieve with your investing, whether it is in the short-term or long-term, with Seattle-based independent advisory firm. Are you primarily saving for retirement, which means you may not access that money for decades? Or is there some other major goal, like an expensive dream trip, that you would like to take in a few years?

Yes, absolutely. I focus on the right hand columns of the Stock Guide ( Earnings per Share) to make certain that there are no recent negative numbers (a recent operating deficit). It's not uncommon for companies to pay a dividend for a while after they begin leaking oil. A dividend cut or omission won't be far behind. We want both, profits and dividends.

Always keep in mind that a bad quarter, in a generally profitable long term picture, sets the stage for those good quarter to quarter comparisons that Wall Street gets all excited about down the road. Such earnings surprises always make the news, and often cause a severe decline in market price.

The inverse of the P/E is the earnings yield of the company. You can compare the earnings yield to fixed income yields and/or dividend yields to get a feel for how cheap the stock is. So a P/E of 50 can be interpreted as an earnings yield of 2%, while 8 can be interpreted as 12.5% earnings yield.

As and when the interview moves ahead, you will be asked several questions that seem ambiguous but are basically questions that are aimed at knowing whether you are aware of the circumstances and situations in the investor market, and what your responsibilities as an investment banker for an individual, family of company.

The other questions that can be asked are about your knowledge and use of signs and tools for evaluating the market direction, for example ? stocks or foreign exchange market software.

B) Concentrating on differentiation as the primary means of achieving competitive advantage

C) Providing a high perceived value service or product to a selected market segment which justifies a substantial price premium

D) All of the above

You have to make sure that you have done your homework and know the ins and outs of the business. The best answer, of course, is to take the traditional way of investing a part of the money in the growing companies, while creating a small nest egg in government and government subsidized companies.

To show investors you really understand your company, point out potential vulnerabilities and how they might affect you. If the price of gasoline or a particular material goes up, what does that mean for your business? Identifying potential risks-and your planned responses to them that will show investors how well prepared you are to run your business.

Be sure you can clearly identify the market segment you are targeting and explain how you will reach it. If you are selling coffee to young urban professionals, you should discuss your audience's growth potential, consumer preferences based on bottom-up and other research and the best marketing channels.