Roles
Corporate Finance
In charge of
large-scale services for big business, in contrast to the more
private-based clearing, retail, and finance banking. Corporate
financiers will handle operations like company flotations,
privatisations, raising venture capital, and other aspects of fund
management.
Investment Banking
Responsible for the handling of large funds such as pension funds, unit trusts, insurance companies and wealthy private clients.
Foreign Exchange/Capital Market traders
The hard end of the banking world, where traders determine the
movement of currencies between countries, and therefore have a large
say in determining the value of the currencies. The recent introduction
of the Euro has increased the trading pressure on the pound, ensuring
that the markets will remain very active and interesting for the
foreseeable future.
Fixed Income
Fixed
income refers to any type of investment that yields a regular (fixed)
payment. For example, if you borrow money and have to pay interest once
a month, you have issued a fixed income security. When a company does
this, it is called a bond (although 'preferred stock' is also sometimes
considered to be fixed income).
Equities
These are company shares, thus representing part ownership by the
investor in a particular company. Ownership of equities / shares will
often entitle the investor to a portion of the company?s profits (paid
out in the form of a dividend at particular intervals). Equities also
offer considerable potential for capital growth, but as their value
will fall as well as rise, there is also the risk of capital loss.
Hence, equities are risk investments, which are best suited to those
who are prepared to tolerate such risk and invest their funds for the
long term.
Quantitative Research
Deals
with facts, figures and measurements, and produces data which can be
readily analysed. Measurable data is gathered from a wide range of
sources, and it is the analysis and interpretation of the relationships
across this data that gives the information researchers are looking
for. These data are collected using numbers, perhaps through answers to
questionnaires. The numbers are then examined using statistical tests
to see if the results have happened by chance.
Derivatives
A manufactured financial instrument, the value of which changes
with movements in an underlying asset, index or interest rate.
Primarily used for risk management purposes.
