Safe Questions
What kind of person are you looking for? (This question will provide useful information on personal characteristics you should emphasize.) What makes a person successful in this business? What made you choose this firm over other firms? What is a typical career path in the (corporate finance, sales, trading, research) department? How much of an analyst/associates time is spent pitching new business? Is there a formal mentoring program for new analysts/associates? If Im a CEO, why would I choose your firm to take my company public?
Medium
Beyond the league tables, what differentiates your firm from other firms? How is an analyst/associate assigned from the generalist pool to a project? How long does it take most people here to become managing directors? Can one request specific teams, industries, or product groups? How well do the firms different divisions work together? Whats the path? Are there specific benchmarks you have to hit? What are the firms biggest challenges and opportunities in the next 2 years? What aspect of your job do you find most frustrating?
Well Done
How has increased consolidation in the industry affected your firm, both positively and negatively? If the company has merged: What new business has resulted from the merger? How well have the two cultures mixed? How would your firm fare relative to the competition if interest rates suddenly skyrocketed? If oil prices plummeted? (Or whatever else you can think of along these lines, to help you gauge how prepared the firm is for future possibilities.) If the company has not merged: Do you think the company needs to acquire or merge with a competitor in the near future? How committed is the firm to building its XYZ business? (Investment banks are known to eliminate entire departments when they underperform against expectations, and if you happen to work for one of those departments, that is not usually good news..) What percentage of the managing directors are female or minority? What most excites you about a (corporate finance, research, sales, trading) job? What can you tell me about a couple of stocks that you follow? Why do you want to work for this bank versus our competitors? Who is our competition (in the major categories)? Tell me about your leadership experience
Tell me about a high-stress situation youve been in. How did you handle it? What could you do better the next time? What did the stock market do last week? The Fed recently lowered interest rates. Do you think the move will be sufficient to stimulate the stock market? Why, or why not? In which areas is our firm the strongest? The weakest? What other banks are you interviewing with? What career opportunities are you exploring other than investment banking? Sales/trading: Pretend that Im a portfolio manager for Investment bank A. Explain to me why I should buy the latest IPO the firm has underwritten Research: Youve just been hired as our firms new finance industry analyst. In 2 weeks, youre scheduled to address a growth-stock conference on industry trends. How would you prepare? Corporate finance: In a merger discussion, ABC Systems says Magnatech is worth $23 per share; Magantech says $34 is more in the ballpark. Whos right, and how would you arrive at a valuation?
1. Why do you want to go into the investment banking? 2. Why do you want a job with the particular firm you are applying for?