(Sales & Trading, Risk Management, Private Wealth)
The sales and trading group is responsible for selling all of the financial products (stocks, bonds, and their derivatives) developed by the investment banking area. As such, they serve as the vital link between the sellers (corporations, government entities) and the buyers (investors). Although frequently lumped together, sales people and traders perform different functions.
Sales professionals have a list of institutional clients that they serve by making them aware of new offerings, advising them on how to manage their portfolios, and selling them financial products. The sales department can be divided by account size, security type (debt or equity), geography, or product line.
Sales people:
- Develop strong relationships with institutional investors.
- Meet with equity research departments and discuss economic trends and their effect on the markets.
- Work closely with the investment banking department to market new debt and equity issues.
- Advise clients in developing and executing investment strategies.
- Watch company/industry/economic/political news and market activity and advise clients about the likely effect on their portfolios.
Traders:
- Develop solid knowledge of market, company, and industry information.
- Make markets by maintaining a position in a stock their firm has underwritten, quote bid and ask prices, and buy and sell at those prices.
- Put major trades together by negotiating with salespeople, clients, and other dealers.
- Perform valuation analysis of derivatives, convertibles, or baskets of stocks.
- Manage the firm’s risk versus the market.
- Take positions on the market through purchases and sales of stocks and equities. During market hours, traders must be able to juggle a number of tasks at once in the high-stress environment of a trading floor.
Private wealth responsibilities involve putting together integrated packages of investments and financial services for your clients. Generally, these clients are high-net-worth individuals. Specific tasks can include estate planning, tax planning, and investment strategies. Your actual recommendations will depend upon your client’s risk preferences, need for income, and desire for involvement in portfolio management.
Typical Concentration(s)
Primary: Finance
Optional Double Concentration: Accounting
Companies that Recruit Vanderbilt MBAs
- Bear Stearns
- Citigroup
- Friedman Billings Ramsey
- Goldman Sachs
- Lehman Brothers
- Merrill Lynch
- Morgan Stanley
- UBS
Owen Extras
Clubs, activities, events, and programs to help build your résumé:
- Max Adler Student Investment Fund
- Vanderbilt MBA Finance Club
- TVA Investment Challenge
- Vanderbilt MBA Hedge Fund
- Investment Banking Academy
- Training the Street
- Financial Markets Research Center
- Finance Symposium
Capital Markets Key Competencies
Do you have or can you build the following competencies as an MBA?
- Entrepreneurial spirit
- Confidence
- Curiosity
- Leadership
- Flexibility
- Unflappability
- Focus and maturity
- Exemplary interpersonal and communication skills
- Team skills
- Ability to multitask
- Familiarity with capital markets and products
- Ability to sell
- Proven record of performing under pressure
- Strong relationship skills
Does your résumé reflect these experiences or accomplishments?
- Strong history of achievement in school and work
- High GMAT
- CFA
- Portfolio management
- New business development or sales and marketing experience
- Connections to individuals or institutions that could be potential customers
