Analysts

​Acceptance Rate

Weeks

• Week 1
• Week 2
• Week 3
• Week 4
• Week 5
• Week 6
• Week 7
• Week 8
• ​Week 9
• Week 10

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Week 1: Accounting Basics

In week one analysts will be introduced to accounting and the important role that it plays in financial decision-making. Accounting is what will allow analysts to truly understand the financial standing of a company. Having a sophisticated knowledge of accounting will give analysts an advantage over other investors by allowing them to spot and avoid companies acting in financially inefficient ways. It is for these reasons that the E-board believes accounting should be week one, priority one.

Week 2: Excel

Being efficient in excel is critical in being a proficient financial professional. When working in excel the difference between five hours’ worth of work and one-hour worth of work can come down to skill and proficiency. It is for this reason that Excel is being placed in week two of the training program. Most any career that analysts choose to dedicate themselves to will likely come with a hefty amount of Excel work and being efficient can mean the difference between career success and failure. Analyst’s will be trained on how to use Excel without the mouse and in ways that are meant to make their work more efficient. Analysts will also be taught some of the basic financial modeling best practices and generally accepted formats. ​

week 3: Ratios & Ratio analysis

Once analysts have gained a decent understanding of accounting, the next critical step is learning and understanding financial ratios. Finance classes will teach students about financial ratios and how to calculate them but will fail to describe what they tell an investor and how to interpret them depending on the size and industry in which a company operates.
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By the end of the week analysts will gain an understanding of ratios such as price to earnings, price to book, earnings per share, debt to equity, price to earnings to growth, price to forecasted growth, price to sales, dividend yield, and more. A quick ratio analysis is often the first step in analyzing a potential investment and it is critical that analysts can do this efficiently and effectively.

WEEK 4: Investment TEchniques

​Now that analysts understand financial ratios and accounting, they will be presented with ways of finding stocks and the investment techniques that they can be coupled with. E-board members are often asked how to find the stocks that the portfolio invests in. While there are certainly many ways an investor can come across an investment opportunity, whether it be in an article, on tv, or through a friend, analysts need a way to find and research the stocks that may be specifically beneficial for the portfolio in which they work.

WEEK 5: Markets & Indices

In this week’s modules the analysts will be introduced to economics and credit cycles as well as the different market indices. It is critical to have some understanding of how the economy works as it has a direct effect on stocks, their prices, as well as their fundamentals.

Understanding how the S&P 500, the Dow, and the Nasdaq are weighted is critical for analysts. Furthermore, ensuring that analysts understand oil prices and gold prices as well as how those prices are determined is important for understanding the companies that underlie these commodities.

Being an investor in these markets, we believe it is critical to understand the underlying fundamentals of markets and their exchanges. 

WEEK 6: MacroEconomics

For analysts, it is important to have a basic knowledge of the economy and the different forces within it that effect markets. Without an understanding of rates there would be no way to understand bond pricing or money supply. Many analysts in the United States have expressed fear regarding inflation, which is another important idea to understand regarding the economy and security yields. In addition to macroeconomic factors, this week’s modules include discussions of currencies, particularly Bitcoin and the role it is currently playing in markets. The discussion includes questions and answers such as what role Bitcoin is playing, what need it fulfills, how and why it has value.​

WEEK 7: Valuation

Now that many of the fundamentals are out of the way the analysts will enjoy learning about the bread and butter of professional investing, valuation. Valuation is one of the more exciting topics this program covers, and it is extremely important to understand for those analysts seeking careers in investment banking, private equity, portfolio management, and more. Valuation allows investors to, using forecasts and estimates, determine either the intrinsic or relative value of an investment. This is a critical skill analysts should have by the end of this program. Being skilled in valuation and having the skills in Excel to go along with it will provide analysts with a competitive advantage in the job market along with making them more well-rounded investors. ​

WEEK 8: Equity Research

Being able to write an equity research report that clearly and accurately reflects an investment’s characteristics is a crucial aspect of being an analyst. Being able to write a great report is fundamental in convincing the club of an investment idea. This week’s modules consist of a few articles that provide an in-depth how-to when writing an equity research report. There are very few resources available for students who either have the desire to go into a career in equity research or for those who simply need to learn it for the club, for that reason the following list of modules has been collected.

WEEK 9: Derivatives

Derivatives are quickly becoming the most commonly traded financial instrument despite the fact that very few people understand them and the risks that accompany them. For this reason, derivatives are being included in this analyst training program. Furthermore, derivatives can be used to either increase or decrease the level of risk in an investment. In the previous semester during a stock pitch one of the club’s Portfolio Managers pitched the idea of using put options to decrease the risk in an already risky investment. For analysts without an understanding of derivatives, this would have been impossible to understand and been a catalyst for further confusion. By learning about derivatives, analysts will be better able to understand the risks and rewards that accompany them.

WEEK 10: Career Preparation

​In the final week of this analyst training program, we will be covering interviews, how to prep, and questions to be ready for. As a club, our goal is to cultivate and prepare the next generation of financial professionals. For this reason, the best thing we can do is give our analysts the tools necessary to be successful in their job quests. Part of that is making sure analysts are ready for potential technical questions they may face once in an interview. Part of this week’s modules will be mock interviews hosted by each of the sectors portfolio managers. Analysts will then receive feedback regarding how they performed and where they can improve. Part of this week’s modules also involves ensuring analysts can accurately pursue a career with precision and focus. Again, we believe that understanding all different fields in finance is key to being an up-and-coming analyst and finance stud.