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Branches of Finance
- Aanika Raja
- Mar 2, 2023
- 2 min read
Are you new to finance? Do you want to explore some of the possible pathways that come from studying finance? Well you've come to the right place! Here I will break down what jobs you can get with a B.S. in finance.
Quantitative Finance
The use of mathematical models to analyze financial markets
While this definition may seem complicated, quantitative finance essentially involves creating algorithms that analyze the stock market and find the best times and places to invest to maximize profit.
This career relates to risk management, derivatives pricing, and involves finance + technology and mathematics.
Jobs: Quantitative Financial Analyst (also referred to as "Quants")
Average Salary: $130k/year
Corporate Finance
Manages business financials, including how to maximize profit and minimize costs, accounting, and day to day cash flow and fund management.
This field generally is a pretty stereotypical 9-5 with a good work life balance.
Jobs: Financial Analyst, Financial Advisor, CFO, CFM, Cost Accountant Auditor, and Tax associate
Average Salary: $66k-$133k/year
Consulting
Work with clients to manage their assets and future of their assets. They look into retirement, debts, income and other financial information to plan a course of action. Financial Consultants may be part of firms such as the big four (PwC, Ernst & Young, Deloitte, and KPMG).
Job: Financial Consultant, Mergers & Acquisitions
Average Salary: $41k-147k/year
Investment Banking
Help their clients make money by selling equity, assisting them in mergers and acquisitions and secure funding via initial public offerings (IPOs), which is when private company first sells stocks to the general public.
This is kind of the stereotypical job a lot of people think of when they think of finance or when they think of Wolf of Wall Street.
Average Salary: $288k/year
Private Equity
Investing or creating value in private businesses by helping finance their operations, growth, and improvements.
Average Salary: $133k-155k/year
Subfield: Venture Capital
Financing that investors provide to small businesses with potential to do well or be successful
combines finance + entrepreneurship
Average salary: $198k/year
Subfield: Hedge Funds
Monitor the market and partner with private investors to earn investment returns and manage assets. Hedge funds generally deal with risky investments.
Average Salary: $135k/year
Another thing to keep in mind when researching about finance jobs is work life balance, Master's degree requirements, company, and exact salary. The salaries here are rough estimates of base salaries that do not include bonuses/stock grants.
I hope this gave you a good introduction into the field of finance and the possible careers that could come out of it!
Sources:
https://www.forbes.com/advisor/education/become-investment-banker/#:~:text=Investment%20bankers%20work%20in%20finance,and%20selling%20securities%20as%20consultants. https://www.wallstreetprep.com/knowledge/private-equity-salary/#:~:text=For%20the%20vast%20majority%20of,150%25%20of%20the%20base%20salary.
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