Career Paths for Financial Management

Prepared by: Gerry O. Gatawa

Financial Management

Financial Officer of Corporations

Treasury of a Bank

Manager of Credit

CooperativeManager in

Insurance firm

More on managing people

Financial Management

Treasury of Corporation

Manager in a BANK

Lending officer Credit

CooperativeInvestments of Insurance firm

More on managing MONEY

Financial Management

Get a JOB, near the MBA school

Attend classes 3 hours a week

35k 70k /m

Financial Management

Master of Business Adminstration For

PROFIT

Master of Development Management NON-PROFIT

Financial Management

Master of Financial Engineering Math, Stat

Master of Computational FINANCEOperations of Investment

companies. Computers / Data

“Are you making money?”

Talks to CLIENTSDeals with other Brokers

* Orients the SALES team

Gets the ORDERSFulfills the ORDERS

Passes on market INFO to “RESEARCH”

Stock broker office

Talks to the Listed Companies

Master of Business

Administration

Chartered Financial Analyst

Manage many workers

+ fixed assets

Manage funds, investments

= Liquid assets.

Jobs related to Stock Exchange & “Securities”CAREER PATH FOR SPECIALISTS

CAPITAL MARKET

For the listed company Fund manager

Broker

Chief Financial Officer

Bank Credit Officer: loans

Investment Banker: issue stock or bonds

Financial Analyst

Economist

Treasury

Budget

Certified Securities

Representative

Chartered Financial Consultant

Chartered Market

Technician

“stock trader”

“Technical analyst”

“Insurance expert”

P6000 / 3 days

P5,000 / 2 days

Registered Financial Planner

Registered Investment

Adviser

Chartered Financial AnalystThree Exams,

Three Years

Portfolios “for you”

Estate, Inheritance

P35K / 8 days

$1200 per exam$220, for teachers

Exam in the USA

Where lie your Talents and SKILLS

More on managing PEOPLE

More on managing MONEY

Questions?

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Securities Representative Certification (SRC) Exam

“SRC exam” for the CSR, the Certified Securities

Representative

Venue: Securities & Exchange Commission, 10th floor. Computer ROOM.

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Economics• If the central bank raises rates, is it

“tightening” or “loosening”?• If reserve requirements are raised,

what is the effect on business? Answer: higher rates on business loans.

• What is the sequence: ex-div date, record date, declaration date, payment date….?

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Profit & Loss Statements• How to calculate EBIT • How to calculate net profit (ebit –

interest – taxes) • How to calculate earnings per share,

given date: EBIT, net Profit, authorized shares, subscribed shares, outstanding # of shares.

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True or False• An “exchange” is any party that acts

as a counterparty in making or taking delivery of shares …. To effect settlement in a securities transaction.

• True • Or • False

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Shares and Debt • What is a reverse split of shares• What happens if you buy stocks one

day after ex-Div date• What are debentures; do they have

any collateral, underlying them?• Which is the “senior debt”, bank loan

or bonds?

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Suspicious transactions• A broker can combine an order for

his account, with an order for a client, for the same security, provided proper accounting is done at the end of the day.

• True or • False

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Dividends• cash dividends – when cash div is paid• Which shares get cumulative preferred?• do “participating preferred shares” get cash

dividends? What kind of dividends.• stock dividends– what happens to the stock

price of 60 after a 10% stock dividend?• What is a 1:4 rights offerring• price of a stock, before and after the rights

offering. Calculate the change.

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Market manipulation• What is securities fraud• What is front-running• What is a “wash sale”• What is “painting the tape” • What is “market surveillance”

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Broker-dealer• What is a broker-dealer• What is a specialist• What is a market-maker• What is a dealer, as opposed to floor

broker, or commission broker.

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Format of Quiz Questions• Sometimes there are four statements• Then they ask you, “Which is true,

….” – A: statements 1, 3, and 4– B: statements 2, 3, and 4– C: statements 1 and 4 only

Exam Results come out after one week

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Format of Quiz Questions• They show four statements, then

ask:• Which of the four statements is “not

false.” – statement 1– statement 2– statement 3, or – All of the above are true / are false.

Exam Results come out after one week

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One examinee per

computer.

One computer per examinee.

Layout of the Exam ROOM

“Sit anywhere.

Choose any PC.”

SEC Exam ROOM looks something like this.

________

Layout of the Exam ROOM

Keep BAGs at this counter

________________

________________________

“Proctor” or Monitor gives you a code number & code

name.

DOORBathrooms Elevator

________

One examinee per computer.

One computer per examinee.

________Water Dispenser.

Free cups.

“Sit anywhere.

Choose any PC.”

Get scratch paper from Monitor.

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TYPE in candidate number,

example “27”

You may go back & forth the 120 questions. You may review

your answers, edit them. Change from “A” to “C”.

Your name will appear.

First name Last name

Next, type in your password

Your exam screen will appear *after three minutes.

After you reach question 120, you may review…

If you are truly finished, click on ‘SUBMIT” button.

When finished:

Are you sure?

“SUBMIT”

Yes No

“test results were submitted”

Question # If the cash dividend is 10… __ If the cash dividend

is 10, and the stock price is 60, how

much is the dividend yield on the stock?

Full Question

0 A. 10% 0 B. 20%0 C. 16.67

Question # If the EBIT is … __Question # Broker’s license

must be … __Question # Money-

Laundering is … __Question #

“Know your client” means

… __IF you Click on “C”…

Then “C” will appear in this

blank

View of the computer monitor at SRC exam

“Choices”

120 questions for 180 minutes

C

Overview of the Questions

Don’t write codigo on your hand

TRUE OR FALSE? The proctors check for three arms, written fingernails…

Register via S-E-C

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