The branch level is generally engaged in retail business, that is, retail stocks and some institutional businesses. Here is a good post, I hope it will help you. The whole financial industry can be roughly divided into two categories: buyers and sellers. What the seller does is mainly to transform various assets into various financial products and provide them to the market. The seller mainly refers to the investment bank in the usual sense.
The internal structure of investment banks is also very complex, which can be roughly divided into two categories according to products: fixed income and equity. According to business, it can be roughly divided into IBD, sales &; Trading, stock research and asset management are similar in nature to buyers. The most traditional business of IBD is investment banking, which is close to the enterprise side; Sales and marketing. Trading is mainly engaged in product sales and trading, and sometimes investment banks will play the role of market makers to maintain market liquidity.
Buyside is mainly engaged in investment management business, so it is also called investment management or AMassetmanagement, which is mainly composed of various institutional investors, including mutual funds, hedge funds and pension funds.
As far as careerpath is concerned, it is hard to say who is good and who is not. The key depends on everyone's specialty and personality. IBD is suitable for people with high enthusiasm and hard work. Sales is suitable for people who are good at interpersonal communication. Trading is suitable for people who can bear great pressure and have a keen sense of the market. Equityreasearch is suitable for pragmatic people.
Generally speaking, IBDcareerpath comes step by step and takes several years to complete. Not only need good business ability, but also need a strong body. Tradercareerpath is very risky, which may ruin the future in two years or rise to the top in a short time. I know it took only two years for a top trader to be promoted from assistant to supervisor.
There are some problems in the industry prospect of Sellsideequityresearch, because the supervision is more and more inclined to maintain the independence of research to protect investors. Buyside generally has a better lifestyle than sellside, and its income also exceeds sellside. However, entering the buyer's market is much more difficult than entering the seller's market.
Note: The scale and complexity of today's financial industry far exceed the imagination of ordinary people. There are many sub-sectors in the whole financial industry chain, so I won't list them here. In addition, the professional division of posts mainly refers to the situation of mature markets. The situation in China is different. The opening of the financial sector has made many young friends in China suddenly enlightened. However, it is accompanied by distorted values. Those who enter the investment bank are cattle, those who enter the Big Four are mortals, and those who enter the enterprise are natives.
Here, I would also like to put forward the following views: there is no hierarchy in the work itself, and I never agree that investment banks are more advanced than the Big Four. Whoever can do well in this field is a great man. Choosing a career path should be based on what you like and what you can do, and then try to strike a balance between them. If you only want to go to a high-level job, you may still get nowhere in retrospect.
Hedgefund translated into Chinese is accurate. Interestingly, however, mainstream hedge funds often do not hedge. On the contrary, many hedge funds make bold speculation on some market trends. Chinese is speculative and derogatory, and English is neutral, which is the antonym of hedge, indicating taking risks and obtaining extraordinary returns.
If hedgefund is related to the domestic situation, the more accurate translation should be private equity fund. In this sense, hedge funds have existed in China for some years, but they have not surfaced because of the legal definition. Now the management is legalizing private equity funds, which should soon become an aboveboard financial force.
At present, it is inaccurate to translate PE into private equity funds in China. There are related discussions below. In mature markets, hedge funds are usually relative to mutual funds. The difference is that mutualfund is an open-end fund, which is publicly offered and traded. Most open-end funds traded in the domestic market belong to mutual funds.
Hedge funds are mostly private and closed-end funds. Hedge funds have become a pivotal role in the global financial market. Hedge funds can be seen from the Southeast Asian financial crisis to the super bull market of commodity futures in the last two years. Hedge funds have developed rapidly in recent years because the yield of hedge funds is generally higher than that of mutual funds.
Coupled with the global capital surplus, multi-billion-dollar funds are now very few. On the concept of hedging. Hedging is a means to control financial risks. For example, if you buy 100 shares, and then you are worried that the stock will fall, you can buy another put option to hedge the 100 shares.
Finally, no matter how the stock falls, the worst result is that you sell your stock at the exercise price of the put option. The concept related to hedging but easily confused is arbitrage. Arbitrage refers to the risk-free income that can be obtained after all relevant risks are washed away. For example, the US dollar exchange rate of China Bank is 8, and the exchange rate of scalpers is 7.
8, you can use 7. 8 RMB was changed from scalpers to 1 USD, and then 1 USD was immediately changed to 8 yuan RMB by Bank of China, earning 0 without any risk. 2 yuan. From the professional point of view, the largest number of buyside and sellsidelink are tradingdesk. The strength of the two sides is almost the same. Basically, there are transactions, structures and research blocks.
Generally speaking, the seller's research is quite fierce, and many basic information of the buyer is obtained by the seller. Sellsidestructure focuses on how to price financial products reasonably, and buyside focuses on how to make models to better predict market changes. The essence is the same, but the traders on both sides are doing the same thing.
When the investment bank designed financial products according to buyside's requirements, the two sides reached a deal. Then investment banks will generally hedge product risks through related party transactions as soon as possible, and buyside is generally under control at this time, because the products he buys are completely customized according to his own judgment. At this time, the two sides are partners, and everyone earns their own profits.
In addition, investment banks sometimes take a stand. In this case, both parties are marketplayer, and the relationship will become a life-and-death game. When the business link is finished, the professional link will naturally come. Traders from both sides are very close, so job-hopping between them is common. As far as research is concerned, it is also difficult for investment banks to compare focus, so they are generally more willing to jump to buyside. But buyside doesn't need a lot of research, and it's not easy to change jobs.
Structure is needed by both sides. Although the emphasis is different, they are all interrelated and jumping with each other. These are the market ends of investment banks. Looking back, IBD's traditional investment banking business is more about dealing with enterprises than the market. On the contrary, the buyer has a lot to do with the market. Therefore, IBD is generally not easy to transfer to the buyer's market.
Because there are many successful venture capital cases in China in recent years, everyone is not too strange. Here is a brief introduction to sports. PEprivateequity is translated into private equity funds in many places in China, which is obviously caused by people who are not familiar with the financial market. As mentioned above, the concept that private equity funds are close to hedge funds is relative to mutual funds.
PE is a concept relative to public fairness. Personally, I translated it into unlisted financing, and now the more recognized translation method in China is private equity financing. Nowadays, vc/pe is a very fashionable word both in America and at home. The reason for the popularity in the United States is that the yield of PE is obviously better than that of publicmarket in recent years, which leads to the rapid expansion of PE scale.
The reasons for its popularity in China are complicated. In fact, the difference between VC and pe is not obvious now. Many times people regard VC as a kind of PE. If it is divided, the main difference between the two is that the investment stage of targetcompany is different. Vc mainly invests in the early stage of the company's development, from the seed stage to before listing. Pe mainly invests in companies with stable cash flow and mature business models.
The most classic practice of PE is LBOleveragebuyout, the core of which is to make goprivate, a listed company with abundant cash and no development motivation, feel a sense of urgency through large financial leverage, thus providing greater benefits for shareholders. Friends who like watching movies must know Pretty Woman, in which richard kiel does sports.
In the film, Roberts asked him what you do, and the answer was quite classic. In short, all I do is buy a company and sell it one by one. Note: This is just a kind of PE practice. Not all VC/PEs are branches that directly deal with enterprises in the financial market. What vc does is watch businessplanbp all day, find out the promising bp and senior management team, and then evaluate the value and invest.
Depending on the company, some VCS will strongly participate in the operation and management of the company, while others will not. Pe is more about finding promising acquired companies and carrying out financial transformation. The ultimate goal of vc/pe is to find a better price to sell the company's shares, thus entering a new cycle. The specific operation method of VC/PE is different in many other places, and interested friends can further explore it.
Now we can simply string together the financial industry chain. Before IPO, the companies were all privately owned, and VC/PE can participate in financing at this stage. When a company needs to go public, investment banks will participate, accurately evaluate the company's value, and then openly recruit. At this time, the shares provided by the enterprise itself or vc/pe are raw materials, and the investment bank processes them into stocks recognized by the financial industry.
The buyer will subscribe before and after the public listing. The next step is the game of all parties in the secondary market. The original definition of finance is all kinds of financing for enterprise development, so finance must have two levels: enterprise and market. The enterprise level is the foundation of the financial industry, and the market level can be regarded as the driving force for the development and growth of the financial industry. The role of investment banks is the hub of the financial industry chain, with one end connected to enterprises and the other end connected to the market.
This fate of enterprises is real, and it can be said that there has not been much change in the hundreds of years after the emergence of capitalism. On the other hand, the market is getting bigger and bigger and tends to be empty. Many derivative financial products first appeared to meet the needs of high-risk public office, but they soon became gambling weapons. The positioning of accounting firms is to ensure the authenticity of the original data of enterprises, whether private or public, so that other institutions can further evaluate the value of enterprises.
Without accounting, the whole financial industry would be in chaos. Therefore, accounting is called economic police. Generally speaking, the core of the docking work between financial industry and enterprises focuses more on the evaluation of enterprise value, while the core of the docking work between financial industry and market focuses on the control of market risk and the judgment of market direction. Due to different skill requirements, it is difficult for both ends to transfer to each other.
On the contrary, as long as it is at the same end of the financial industry chain, it is at least logically feasible to change careers.