We often get a list of questions asked, that we feel makes sense to simply write a post with questions frequently asked. Obviously, the list changes, so this page will be updated frequently.
Do I need to major in finance?
No. If you speak to people, I’d say 50% + did not major in finance. Obviously, you need to prove that you researched the role and did your homework, but other than that, this will not be a deciding factor. However, you will need some basic financial knowledge and understanding of the markets, as you will be competing with finance majors who have had 2-3 years of training.
Do I need to choose during interview between Sales or Trading?
Unlikely have to choose, but possible to be asked preference. Have a sense of what you want to do in case asked. See differences between Sales & Traders here.
Is there a GPA cut off?
GPA is a factor, but it’s mainly used during HR screening round – a number < 3.0 will likely be fatal, but > 3.5 is unlikely to help significantly (out of 4.0). If your GPA is below a cutoff, the best option is to network, and hope someone can help refer you directly to a first round interview.
Can I apply directly for full time roles?
Yes, but it is unlikely you will be hired. Roles are becoming more and more competitive, especially during COVID when companies have been extending return offers to almost all interns as a “social responsibility”. The likely result is that new grade full time hiring will be significantly reduced. The best way to enter is through a Summer Internship, do well and then convert to a full time role.
What kind of market knowledge is required?
It depends. If you are a finance major, the bar will likely be higher. As in, they will at the minimum ask for your opinion on the markets, and if you’ve taken coursework such as Derivatives, Fixed Income, will possibly ask you basic questions on products E.g. call options, put options, six factors affecting call option pricing.
Even if you don’t major in finance, it helps to build a solid base in market understanding in order to have a dialogue with the interviewer. We can teach you how here.
Do I need to know DCF valuation?
Nope. It certainly won’t hurt though.
Does CFA help?
Similar to DCF, it can only help, and definitely won’t hurt.
Do I need to prepare a stock pitch?
Yes, even if not asked, odds are they will ask if you’ve been investing. Prepare 1 Long & 1 Short at a minimum.
Do I need to learn coding?
As of today (2021 April), is not mandatory, but some level of coding will likely be the expectation in the near future. Many firms now have optional coding tests, and the industry is relying more and more on technology, so will likely be in your best interest to learn some Python.
ARM Financial Markets 