A simple explainer on jobs in finance:

1. Investment Banking:

- Help their clients raise money (eg. getting a firm to IPO)

- They also help with M&A deals i.e help their clients acquire/merge firms.

Honeybee=Flowers; similarly, Investment Bankers= money.

Degrees: MBAs/top undergrads

2. Private Equity:

- They are usually long-term players.

- They invest in struggling firms/businesses. Help facilitate structural changes. Improve the firm.

- Then they sell it off by adding this value.

Degree: network driven (agnostic)

3. Mutual Funds/Equity research jobs:

- Poor people like you and me have limited funds.

- And, most of us are not good at investing our money.

- So we think: "hey let's hire an expert, who will invest on our behalf"

- So a Mutual Fund manager, mange poor people's. They hire Equity Researchers.

Degree: CFA

4. Hedge Funds:

- They invest rich people's money.

- Undertake a range of investments: stocks, Bitcoins and whatnot!

Degree: MBAs/top undergrad/IB experience

5. Venture Capitalist:

- They invest in startups.

- You need to research markets and relevant target firms to invest in.

- Make that deal happen (negotiations and stuff).

Degree: MBA/prior startup experience/Mgmt Consulting or IB experience.

Credits: Akshat Shrivastava