The Ultimate Investment Banking Cheat Sheet II: Actual Interview Questions and Answers (2024)

FAQs

What are the questions asked in investment banking interview? ›

PJT Partners, launched within the last five years by famed rainmaker Paul Taubman, leads the list, with 99% of candidates considering the interviews to be difficult.

Give a BS answer like “I work too much” or “I'm too much of a perfectionist.” Give a legitimate weakness, like saying that you sometimes lose focus when working on extended projects, or that you have trouble delegating work to others, and then show how you've been working to improve yourself.

Getting a 45 in the IB is an extremely difficult task. Not only does it require extreme effort but a lot of help along the way. That being said, there are a number of students who reach this unreachable goal every year. Last year that number was 275 students, or 0.41% of candidates.

Many of the technical questions you get will be on basic accounting and valuation. They will ask you questions on discounted cash flow analysis, intrinsic valuation vs. relative valuation, etc. Interviewers may also give you challenging brainteasers to see how you think about problems on the spot.

What experience do you have in an M&A role? How has your education prepared you for working in finance? Can you describe a situation when you used your problem-solving skills to resolve a conflict? What was the most successful deal you worked on?

How many rounds of interviews is normal for investment banking? ›

Investment banks typically hold two rounds of interviews, although some hold more than this. The first round usually takes the form of a telephone interview or video interview. Questions about your motivation for applying often feature heavily in this initial interview.

Give me an example where you sought out a problem to solve because it represented a challenge for you. Give me an example where you came up with a creative solution to a problem. Give me examples of your leadership abilities. Tell me about a time when you worked in a team and something went wrong.

What Are the Big 4 Investment Banks? The big four are JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley. Some other global giants are treading right on their heels, including Deutsche Bank, Barclays, Credit Suisse, and UBS.

Bankers continue to regard Goldman Sachs as the world's most prestigious bank, followed (as always) by Morgan Stanley and JP Morgan. Credit Suisse and UBS lost the most ground in 2022 while LionTree Advisors' reputation improved the most in the eyes of bankers.

While Superday is the final step in the interview process, it isn't a time to relax. Considering that Goldman Sachs is reported to have a 1.5% acceptance rate into its internship programs, and JPMorgan only had around 400 openings for nearly 50,000 applicants in 2021, landing a spot at a major bank is no easy feat.

March 10 (Reuters) - Startup-focused lender SVB Financial Group (SIVB. O) became the largest bank to fail since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets, left billions of dollars belonging to companies and investors stranded.

Weaknesses of Goldman Sachs

High Employee Turnover Rate – Goldman Sachs has a higher turnover rate compared to its competitors, which means more employees are leaving their jobs and, as a result, more money is spent on training and development when employees leave and join.

Answer for “Where do you see yourself in 5 years?” “In five years, I see myself as an integral part of the company who has helped contribute to the growth and success of the organization. I would like to continue developing my skills and knowledge in order to be able to take on more responsibility within the company.

Do investment banks hire non interns? ›

The short answer is yes — but it will be hard. The full-time analyst acceptance rate is likely significantly lower than that of internships, especially considering the lack of relevant finance experience.

Here are a few tips on how to land a job in investment banking when you have no experience. It's almost impossible to stress enough how important this is. You need to get to know people in the field and have them create a bridge between you and the bank. It's a lot easier and safer than having to apply normally.

This is common across the industry where acceptance rates for programs are typically less than 2%. Despite its tough publicity over the years, investment banking is still a highly sought-after career in the finance sector.

Mathematics HL is one of the hardest International Baccalaureate subjects for high school students. The subject not only has difficult concepts and complex optional topics, but also an immense workload and tricky exam questions.

It depends. Some students argue that IB is more challenging because of the emphasis on critical thinking and the more application-focused evaluations. However, both IB and AP classes are considered college-level courses that many students find challenging.

* Based on the Statistical Bulletin of November 2021, the world averages are as follows: Average pass rate: 87.4% Average points: 32.3.

IB Grade Scale

Each subject is graded 1–7, with 7 being the highest grade.

The IB does not assign passing scores for individual courses. A student simply receives a course score between one and seven.

How do I ace my M&A interview? ›

“Communicate, communicate, communicate to manage stakeholder expectations.” “Culture and bias were the biggest factors inhibiting a successful M&A.”

Rule 12 - Court Interviews of Children (a)Generally. On a party's motion or on its own, the court may conduct an in camera interview with a minor child who is the subject of a legal decision-making or parenting time dispute to ascertain the child's preferences as to both.

While there isn't a fixed 'right' number of candidates to include on a shortlist, the ultimate goal for a shortlist is to narrow it down a to between three and five people. Considering culture is important during the hiring process, Gorton says.

These generally consist of 30-45 minute interview slots, where candidates will meet with 1-2 investment bankers (usually Associates and VPs). There will be both behavioral and technical questions asked — so make sure to prepare for classic investment banking interview questions beforehand.

A tier 1 investment bank has massive financial strength. The four major banks of the US, namely JPMorgan, Bank of America, Wells Fargo and Citigroup, are the tier 1 banks in terms of their valuation, asset holding, revenue and net income.

What is the #1 investment bank in the US? ›

Goldman Sachs is widely known as the most prestigious investment bank on Wall Street. The bank's interns receive phenomenal training, hands-on experience, and the opportunity to rotate across many groups and desks.

Goldman Sachs controversies are the controversies surrounding the American multinational investment bank Goldman Sachs. The bank and its activities have generated substantial controversy and legal issues around the world and is the subject of speculation about its involvement in global finance and politics.

Private equity is extremely prestigious. Compensation for both careers is very high, but the work/life balance in private equity is better, it is often the preferred exit route for investment bankers who have a few years of experience.

High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.

General rule in a first round investment banking phone interview is that you can't miss any technical questions that arise. Typically bankers like to ask at least one technical question to gauge that you have done your homework. They usually aren't the hardest questions but you should be prepared to answer them.

Many of the technical questions you get will be on basic accounting and valuation. They will ask you questions on discounted cash flow analysis, intrinsic valuation vs. relative valuation, etc. Interviewers may also give you challenging brainteasers to see how you think about problems on the spot.

Our purpose comes to life through our four core values: Partnership, Client Service, Integrity, and Excellence.

Is Goldman Sachs interview difficult? ›

Goldman Sachs Interviews FAQs

Is it hard to get hired at Goldman Sachs? Glassdoor users rated their interview experience at Goldman Sachs as 64.9% positive with a difficulty rating score of 3.26 out of 5 (where 5 is the highest level of difficulty).

Is it easy to crack a Goldman Sachs interview? Interviews at Goldman Sach are quite similar to other good tech companies. It is not that difficult to crack. The interviewer only checks that you have the skills to solve challenges.

Q: Where do you see yourself professionally in five years? Five years is a long way down the road, but I know that finance will always have a grip on me. I could see myself in investment banking for the long-term, but that would have to depend on my performance and my family situation.

The first thing you should do when answering “why should we hire you?” is to highlight any skills and professional experience that are relevant to the position you're applying for. To make your answer all the more valid, make sure to always back up everything you say with examples, experiences, and achievements.

Show that you have skills and experience to do the job and deliver great results. You never know what other candidates offer to the company. But you know you: emphasize your key skills, strengths, talents, work experience, and professional achievements that are fundamental to getting great things done on this position.

“Honestly, I possess all the skills and experience that you're looking for. I'm pretty confident that I am the best candidate for this job role. It's not just my background in the past projects, but also my people skills, which will be applicable in this position.

The first step on your path to an investment banking career is to get an interview. Investment banking is extremely competitive with way more applicants than available positions each year. You will often be up against students from Ivy League universities, with a high GPAs and multiple internships under their belts.