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21. Q&A! Prop Trading, DCF vs. LBO, Beta, Consulting vs. Banking and More!

21. Q&A! Prop Trading, DCF vs. LBO, Beta, Consulting vs. Banking and More!

FromThe Wall Street Skinny


21. Q&A! Prop Trading, DCF vs. LBO, Beta, Consulting vs. Banking and More!

FromThe Wall Street Skinny

ratings:
Length:
59 minutes
Released:
Aug 12, 2023
Format:
Podcast episode

Description

We tackle these listener questions and more in our latest Q&A episode!  1. What is the difference is between prop trading and the trading you hear about in the sales & trading division of an investment bank?  And how does a prop shop differ from a hedge fund?2. When running a DCF and choosing your beta for CAPM, when do you use the industry average beta vs. when do you use the company beta? We also get into predicted betas vs. historicals, levering and unlevering betas, if R squared is useful in making decisions about your beta, why banks purposefully don't use what the academics say to use and more.3. What are these mysterious Greek letters that people in finance toss around like delta, beta, and gamma?  4. Why would some industries like natural resources not use LBOs and instead only use a DCF, like for example when constructing a toll road.5. How do you choose between a career in banking or consulting?  If you want us to answer YOUR questions in our next Q&A, please write to questions@wallstreetskinny.com.Follow us on Instagram and Tik Tok at @thewallstreetskinnyhttps://www.instagram.com/thewallstreetskinny/
Released:
Aug 12, 2023
Format:
Podcast episode

Titles in the series (64)

This podcast is a smart and entertaining peek into the world of investment banking, sales & trading, private equity, hedge funds and more. Hosted by two lifelong friends with a passion for teaching, and over two decades of experience on Wall Street.  Discover the basics, ranging from “what is investment banking?” to “what moves markets?".  Learn about different roles and exit opportunities, and get tips on how to land the job.  Our mission is to make the world of Wall Street accessible to everyone, while keeping things relatable and fun.Whether your goal is to work on Wall Street, or if you have NO idea what any of those things are and just want to learn some basics, this podcast is for you.