Sales and trading: Sample questions from various banks

Questions at US banks:

What is 1 divided by 16?

What is 0.64 divided by 12?

What are the benefits of holding equities over fixed income instruments?

What is a PE ratio? What does a relatively high PE ratio mean to the market, and how does that differ to what it means for a trader?

Tell me about a stock you like?

Where is the economy going?

Where is the FTSE100, Dow, S&P 500?

What is the Fed funds rate, B of E rate, ECB rate?

Candidate comments:

Questions at US banks tended to be much more technical and less competency-based than at European banks and were often handled by members of each specific business unit rather than by HR. In fact, in only one of the four interviews was a member of HR present - and they played a very minor role in the interview. Typically, questioning at US banks was a little more pressurised - I was routinely cut off mid-sentence if a question had been answered or if I had wandered from a concise answer. After a brief handshake, questions would quickly commence...

Questions at European banks:

Why banking?

Why trading?

Why this bank?

Why did you study Economics (etc.)?

Why did you choose XYZ University?

Tell me about a time that you have.....

· overcome adversity?

· changed your mind about something?

· turned an idea into reality?

· exceeded expectations?

· had to deal with a difficult team member?

· worked as part of a successful team?

Candidate comments:

The key is to have thought about potential answers in advance. These kinds of questions naturally favour students who have attended more high-profile universities, have played in sports teams at university and are naturally confident in discussing their hobbies and interests - if you do not tick all three of these boxes, then you will usually be expected to have completed an internship at a financial institution of some kind, or have some direct experience in your chosen role.

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These questions were provided to us by a candidate claiming to have interviewed at the institution named above. We cannot guarantee that these were the actual questions asked.