Investment Banking
Name 3 Investment Banks
Possible Answers: Goldman Sachs, JP Morgan, Morgan Stanley, Bank of America, Citi, Barclays, UBS, Deutsche Bank, etc.
This job involves managing money for large institutions like pensions and endowments.
What is Asset Management?
A person who starts and builds a new company is called this.
What is a founder/entrepreneur?
Money you borrow and have to pay back with interest.
What is debt?
What is it called when one company buys another company.
What is an acquisition?
This type of client might work with a Wealth Manager: a billionaire family or a business owner.
What is a high-net-worth individual?
When a startup raises money for the first time from investors, it’s often called a “_____ round.”
What is a seed round?
A payment companies give to shareholders from profits.
What is a dividend?
What do investment bankers help companies raise when they need money to grow?
What is capital?
AWM uses this type of investing to focus on steady, long-term growth rather than quick flips.
What is long-term investing?
This is the term for a startup valued at over $1 billion.
What is a unicorn?
The total amount of money a company makes from selling its products or services before expenses.
What is revenue?
Name one of the three financial statements.
Possible Answers: Income Statement, Balance Sheet, Cash Flow Statement
Don't put all your eggs in one basket" is the folk version of this strategy — spreading money across many investments so one bad bet can't sink the portfolio
What is diversification?
Name any two founders who attended Harvard.
Possible Answers: Mark Zuckerberg (Facebook), Bill Gates (Microsoft), Spencer Rascoff (Zillow), Nathan Blecharczyk (Airbnb), Will Ahmed (WHOOP), etc.
The total value of a company’s shares in the stock market.
What is market cap (capitalization)?
This nickname refers to the small group of largest, most prestigious global investment banks — Goldman, JPMorgan, Morgan Stanley among them.
What is the bulge bracket?
This three-letter metric is the total value of client money a firm manages — and the number their annual fee is a percentage of.
What is AUM (assets under management)?
This term describes how fast a startup burns through its cash each month — and how long it has before it needs to raise again.
What is burn rate?
How easily an asset can be turned into cash without losing much value.
What is liquidity?