Top interview questions to expect

1. Tell me about yourself.
2. Why are you interested in equity research?
3. What is your experience with financial modeling?
4. Describe your investment process.
5. How do you stay up-to-date on market trends?
6. Give me an example of a time you had to analyze a company.
7. What are your salary expectations?

Check the latest questions for this role:

Answering interview questions with STAR structure

The STAR method is a powerful tool for answering behavioral interview questions. It helps you structure your responses by focusing on the Situation, Task, Action, and Result of a specific experience. This framework allows you to showcase your skills and accomplishments in a clear and concise way, making a lasting impression on the interviewer.

Sample answers to above interview questions

1. Tell me about yourself.

This question is an opportunity to introduce yourself and highlight your relevant skills and experiences.

Example Answer: “I’m a highly motivated and detail-oriented individual with a strong passion for the financial markets. I’ve always been fascinated by the dynamics of the stock market and the impact of economic factors on businesses. My background in finance, coupled with my experience in [mention relevant experience, e.g., financial modeling, market research, or investment analysis], has equipped me with the skills and knowledge necessary to excel in an equity research role. I’m eager to contribute my analytical abilities and learn from experienced professionals in this field.”

Why this is a strong answer: This response uses the STAR method by briefly outlining the Situation (your interest in finance), the Task (your experience in relevant fields), the Action (your skills and knowledge), and the Result (your eagerness to contribute).

2. Why are you interested in equity research?

This question assesses your understanding of the role and your genuine interest in the field.

Example Answer: “I’m drawn to equity research because it combines my analytical skills with my passion for the financial markets. I enjoy the challenge of dissecting complex financial data, identifying investment opportunities, and formulating insightful recommendations. I’m particularly interested in [mention specific areas of interest, e.g., technology, healthcare, or emerging markets] and I believe that an equity research role would provide me with the platform to develop my expertise in these areas.”

Why this is a strong answer: This answer focuses on the Task (your interest in financial markets), the Action (your analytical skills), and the Result (your desire to develop expertise in specific areas).

3. What is your experience with financial modeling?

This question tests your technical skills and ability to perform quantitative analysis.

Example Answer: “I have extensive experience with financial modeling using [mention specific software, e.g., Excel, Bloomberg, or FactSet]. In my previous role at [mention previous company], I was responsible for building and maintaining financial models for [mention specific projects, e.g., valuation analysis, merger and acquisition modeling, or forecasting]. I’m proficient in [mention specific modeling techniques, e.g., discounted cash flow analysis, sensitivity analysis, or scenario planning]. I’m also comfortable working with large datasets and conducting thorough data analysis.”

Why this is a strong answer: This response highlights the Situation (your previous role), the Task (building and maintaining financial models), the Action (your proficiency in specific modeling techniques), and the Result (your ability to handle large datasets).

4. Describe your investment process.

This question probes your understanding of investment principles and your approach to decision-making.

Example Answer: “My investment process begins with a thorough understanding of the market environment and identifying potential investment themes. I then conduct fundamental research on companies within those themes, focusing on their financial performance, competitive landscape, and industry trends. I utilize various analytical tools, including financial modeling and valuation techniques, to assess the intrinsic value of a company. Finally, I consider risk factors and potential downside scenarios before making an investment recommendation.”

Why this is a strong answer: This answer outlines the Situation (market environment), the Task (identifying investment themes), the Action (conducting research and analysis), and the Result (making investment recommendations).

5. How do you stay up-to-date on market trends?

This question assesses your commitment to continuous learning and your ability to stay informed about industry developments.

Example Answer: “I stay up-to-date on market trends through a variety of sources. I regularly read financial publications, such as The Wall Street Journal, Bloomberg, and Financial Times, to stay abreast of current events and market insights. I also attend industry conferences and webinars to gain deeper knowledge of emerging trends and innovations. Additionally, I follow key industry experts and analysts on social media platforms and subscribe to relevant newsletters. This multi-faceted approach ensures that I have a comprehensive understanding of the market landscape.”

Why this is a strong answer: This answer highlights the Situation (your commitment to staying informed), the Task (following market trends), the Action (utilizing various sources of information), and the Result (gaining a comprehensive understanding of the market).

6. Give me an example of a time you had to analyze a company.

This question allows you to showcase your analytical skills and your ability to apply your knowledge to real-world situations.

Example Answer: “In my previous role at [mention previous company], I was tasked with analyzing a publicly traded company in the [mention industry] sector. I began by gathering financial data from their annual reports and SEC filings. I then built a detailed financial model to project their future earnings and cash flows. I also conducted a thorough industry analysis to assess the company’s competitive position and identify potential growth opportunities. Based on my analysis, I concluded that the company was undervalued and recommended a buy rating. My recommendation was subsequently adopted by the investment team, and the stock price appreciated by [mention percentage] over the following year.”

Why this is a strong answer: This answer uses the STAR method by describing the Situation (your previous role), the Task (analyzing a company), the Action (your analysis and research), and the Result (your recommendation and its impact).

7. What are your salary expectations?

This question is an opportunity to communicate your value and negotiate a fair compensation package.

Example Answer: “Based on my experience and skills, as well as my research on industry standards, I’m seeking a salary in the range of [mention desired salary range]. I’m confident that I can make a significant contribution to your team and am eager to discuss a compensation package that aligns with my value and your company’s expectations.”

Why this is a strong answer: This response demonstrates your preparedness and professionalism by providing a specific salary range based on research and your understanding of your worth.