intercollegiate finance journal

The

Twitter vs. Facebook:IPO StyleBy Alon Galor, page 20

DECEMBER 2013

Some free advice about free stuffBy Steven Adler, page 4

Speaking from experience: how to f i nd & learn from your summer internshipBy Ti!any Chang, page 12

Social entrepreneurship in the 21st centuryBy Amber Teng, page 28

BuSIneSS & STarTuPS

PerSOnal FInanceSome Free Advice about Free Stu!, by Steven Adler

careerS & InTernShIPS

MarkeTS & InveSTIng

4alSO: How to Successfully Budget in College, by Ebony McCaksill

What Are Credit Unions? by Julia Verbrugge 6

alSO: Five Reasons to Start Saving Now, by Lauren Tsai

Poker: An Art, a Lesson, or Simply Gambling? by Ana Rosenstein

7alSO: Top 3 Finance Books to Read, by Carter Johnson

Marriage & Acquisitions, by Christian Ackmann 8Ten Easy Ways to Scrimp in College, by Eric Han 9Score with Your Credit Score, by Perry Feldman 10

Beating the Bot: Why Your Resume May Never Reach Human Hands, by Kaden Lee 14

"read of Life: Doctors in Danger Zones, by Tung Nguyen 18

Student Spotlight: Laura Flanagan & Danielle Waldman, by Caroline Vexler 16

Social Entrepreneurship in the 21st Century, by

Amber Teng 28Start Me Up: Six Startups to Watch, by Michael Golz 30

alSO: The Digital Future of Marketing, by Alexandra Garcia

From Wayland to Wall Street, by Jonathan Vu 32Carnitas & Coldplay: The Chiptole Business Model, by Camila McHugh 33

"e Intercollegiate Finance Journal December 2013 Contents 3

Twitter vs. Facebook: IPO Style, by Alon Galor 20

Speaking from Experience: How to Find & Learn from Your Summer Internship, by Tiffany Chang 12

alSO: Internship, Conference, or Job in NYC? Here Are 10 Ways to Save in the City, by Mark Valdez

Bitcoin: Myth and Reality, by Shreya Bhargava 22alSO: Interview with Akash Shah from Morgan Stanley, by Kyle Law

,|b�Á���8±Ê����8O¼��n��bq8¼���V�by Sarah Park 25

Current Accounts, the Politics of Debt Ceilings, & America’s Economic Future, by Christopher Dederick 26

alSO: The Obamacare Market, by Thomas Pesce

"e IFJ Team "e Intercollegiate Finance Journal December 20132

E-Cigarettes: Smoke in Our Eyes or Shock to the Industry? by Carolyn Stichnoth 24

“Some Free Advice About Free Stu! ”We all love free things. Unfor-tunately, there really is no such thing as a free lunch. When looking at a free o!er, you may want to consider the hidden price of “free.”

On the cover...

“Twitter vs. Facebook: IPO Style”

Just before Twitter’s leap from Silicon Valley to Wall Street early last month, investors jittered at the possibility of a Facebook-like IPO debacle. When the "rst trade came in at 73% above Twitter’s IPO price, Goldman Sachs head banker perfectly articulated the market sentiment, tweeting ‘Phew’. Ex-post, many ask what allowed for the polar outcomes of the twin social media giants? Why did Facebook’s IPO tank while Twitter’s soared?

“Social Entrepreneurship in the 21st Century”

In today’s rapidly changing

world, entrepreneurs constant-

ly seek new opportunities in

answer to the diverse social

and economic questions of

the 21st century. The result is

´�O�8�� b�¼±b�±b�bÁ±´|��V� 8� ob�Y�in which innovators focus on

systemic, grassroots change in

order to achieve social progress.

“Speaking from Experience: How to Find & Learn from Your Summer Internship”

When weighing your summer options, it’s easy to lose track of the what’s most important: gaining experiences. Take a quick look at what a few Brown students have to say about choosing the right internships for you and how to best make these experiences worthwhile. Includes important and infor-mative perspectives on making it all count.

!e IFJ Online www.thei#.com

Check out additional content including:

“What Is An Index Fund?” by Alexander Behnke

“Money Saving Mistakes You Could Be Making”by Amanda Yao

“Starting Early or Starting Big?”by Joanne Low

Contact UsTo submit or become part of the team...Email: team@thei#.comFacebook: facebook.com/thei#1Twitter: @the_i#

Volume I Issue II“Serving the collegiate community with news and knowledge on !nance, econom-ics, and business topics, all at your !ngertips!”

leTTer FrOM The edITOr

We at the IFJ pose a question: Is $nance fun?

For many students, the answer is an emphatic no. Students see the word “"nance” on our cover and are instantly turned away by thoughts of long hours, te-dious spreadsheets, and screams of “buy, buy, buy” (no, we’re not referencing ‘N Sync’s 2000 chart-top-ping hit.)

We’re here to prove you wrong. As you shu#e through these pages, we hope you will "nd that these articles are entertaining, useful, relatable, and inter-esting. No matter your background – whether you’re an English concentrator hoping to balance your checkbook or an Economics concentrator hoping to ace your banking interview – we’ve got you cov-ered. You may "nd yourself chuckling or nodding your head in agreement. You may even "nd yourself having fun.

Flip through the pages and you will realize that we have broken up articles into four main sections to make it easier for students to navigate: personal "-nance, markets & investing, careers & internships, and business & startups. So, whether you’re inter-ested in improving your credit score (see page 10), hoping to "ll your wallet with bitcoins (see page 22), landing an internship this summer (see page 12), or wondering what makes Chipotle such a great busi-ness (see page 33), we’ve got an article for you.

So throw away the Wall Street Journal, turn o! CNBC, and close your Hu$ngton Post tab. Sit back and enjoy the December edition of the IFJ!

Alex L. DrechslerCo-President & Editor-In-Chief

The execuTive Board

Alex Drechsler Co-President & founderBrice Gumpel Co-President & founderMax Deutsch Co-Head of Business

Matthew Ostrow Co-Head of Business

Stephanie Hennings Head of LayoutSteven Adler Head of ContentFelicia Iyamu Head of distriButionMichele Narbonne Head of reCruitmentAlexandra Nuttbrown Head of styLeLauren Tsai Head of oPerationsWonnie Sim treasurerEmily Law Head of design

Business Team

Max Deutsch Co-Head of BusinessMatthew Ostrow Co-Head of BusinessLauren Tsai Head of oPerationsWonnie Sim treasurerChristopher Heo, Yuta Inumaru,

Kaden Lee, Nicholas Pucel, Destin

Sisemore

design & LayouT Team

Steph Hennings Co-Head of designEmily Law Co-Head of designMadeleine Johnson Head iLLustrator

Christin Aucapina, Israel Carrete,

Chandelle Heffner, Quinn Herrera,

Aleksandr Khomyakov, Kaden Lee,

Sarah Lee, Kimberly Meilun, Amy Yao

Meng, Nicholas Pucel, Kaitlyn Roth-

amer, Lorraine Salim, Mili Sanwalka,

Claire Su, Sirena Turner, Kayla Tyrrell

WeB & sociaL media Team

Yuta Inumaru Head of WeB & soCiaL mediaSara Hartse, Madeleine Johnson,

Tung Nguyen, Nicholas Pucel

ediToriaL Board

Christian Ackmann PersonaL finanCeSarah Park PersonaL finanCeAndrea Wistuba-Behrens Careers & internsHiPsAlon Galor markets & investingAlex Lloyd George markets & investingCarter Johnson Business & startuPsCaroline Vexler intervieWs & otHer Content

senior sTaff WriTers

Tiffany Chang, Eric Han, Christopher

Heo, Kaden Lee, Ebony McCaskill, Camila

McHugh, Tung Nguyen, Thomas Pesce, Ana

Rosenstein, Claire Su, Daniel Tatar, Angela

Marie Bernadette Teng, Amanda Yao

sTaff WriTers

Alexander Behnke, Shreya Bhargava,

Frances Chen, Christopher Dedrick, Perry

Feldman, Miguel Ferreira, Alexandra Garcia,

Michael Golz, Quinn Herrera, Peter Hix,

Kristina Hu, Nathan Johnson, Kyle Law,

Joanne Low, Lehm Maguire, Giuliano

Marostica, Alisa Owens, Kiera Peltz,

Christian Petroske, Ignacio Perez-Pozuelo,

Graham Rotenberg, Jordan Schochet, Kelsey

Sherman, Kjetil Stiansen, Carolyn Stichnoth,

Mark Valdez, Jonathan Vu

copy ediTors

Nathan Johnson, Elizabeth Studlick, Lauren

Sukin, Caroline Vexler

facT checkers

Christian Ackmann, Shreya Bhargava, Arielle

Schacter, Scott Schubert

inTercoLLegiaTe coordinaTors

Mohammed Atallah, Peter Chodas, Vansh

Talwar, Marisa Werner

T h e I FJ T e a m

See alSO: Interactive Features: Personality Quiz & Personal Finance Word Search, by Caroline Vexler 34

Learning to Tango: Case Interview Style, by Alisa Owens 17

Some free advice about free stuff

I’m going to let you in on a little secret: Sometimes, free things aren’t really so free. You might think that you’re getting a great deal, but sometimes free can be downright costly.

"e Intercollegiate Finance Journal December 2013 Personal Finance 5 Personal Finance "e Intercollegiate Finance Journal December 20134

PerSOnal FInance 5 Let’s Make A Budget: How to Suc-

cessfully Budget in College

6 Back to the Basics: What Are Credit Unions, and Why Should You Care?

7 Poker: An Art, a Lesson, or Simply Gambling?

7 Top 3 Finance Books to Read

8 Marriage & Acquisitions

9 Ten Easy Ways to Scrimp in College

10 Score with Your Credit Score

10 Five Reasons to Start Saving Now

Visit ¼|b�n�¡O��¹�b±´��8�~o�8�Ob for these articles:

Starting Early or Starting Big

Money Saving Mistakes You Could Be Making

also In This Section

FREE THINGS CAN COME AT A STEEP PRICE

by Steven Adler

Free Tattoos?Here is a great example from Dan Ariely, a behavioral econom-

ics professor at Duke University:

A New York City nightclub recently gave out “free tattoos”

with admission to promote an event and over 70 people signed

up for the promotion. On

the surface, this appears

to be a great outcome: the

club was able to attract cus-

tomers for its event, and

the customers who came

presumably had wanted

to get a tattoo anyway. So,

what’s the big deal?

It seems that the peo-

ple in line for tattoos were

not attracted so much by

the tattoos as they were by

their price. In fact, Ariely

found that of all the peo-

ple in line, roughly 70% of

them said that they were

only getting the tattoos be-

cause they were free.

Hidden CostsGetting a tattoo is a cost-

ly decision—even when it

is free. To start, the tattoo

will be on your skin for

life. Of course there are

removal procedures, but

they are often extremely

expensive and it can take

years to repair the skin en-

tirely. When you get a tat-

too, even a free one, you

are either committing to a

very long-term design, or

committing yourself to ex-

pensive operations down

the road. Neither one gets

labeled as a cost by the

nightclub, but each is cer-

tainly important.

Not only do “free”

transactions sometimes

|8Çb�|�YYb��o�8�O�8��O�´¼´�(think of the free furniture

Ê�Á���t|¼�o�Y�8¼� ¼|b�b�Y�of a school year and then

must pay to put into stor-

age), but they can also

have unexpected health

consequences.

In the case of the free tattoos, it seems that low price also

came with low health standards. The customers, attracted by

¼|b���Èb±��n�«n±bbV¬��±�F8F�Ê�È�Á�Y���¼�|8Çb�q�O�bY�¼��8�O�ÁF�advertising “Free HIV” or “Free Hepatitis C.” When framed as a

free good, these costs were not apparent.

1

2

3

4

5

LeT’s MaKe A BuDgEt!How To Successfully Budget in College

College is a balance between academic and social life. How-ever, it can be hard to have fun without any funds. Luckily, it is not hard to create a balanced budget on your own. Here are

some tips for creating a successful college budget.

Creating a budget is an important skill that can be per-fected while in college. Well planned budgets can erase

the past, secure the present, and ensure the future.

Be realistic. When developing a budget, estimate how much in-

come you expect to earn. Do you work? Does your family give you an allowance? This step is the foundation of your budget. The more honest you are with yourself, the more effective your budget will be.

Understand your needs versus wants.Do you pay rent? Are you off meal plan? Is tuition

due? Rent, food, and tuition are necessary for your survival at school. That new crewneck? Not so much. You could still buy the sweater, but an effective budget takes care of necessary expenses first. Wants are always secondary.

Prioritize your wants.Know yourself. If you value eating out more than

having the newest technology, make sure your budget reflects that. Great budgets prioritize the allocation of funds. It keeps the budget consistent and realistic. Most importantly, it is more likely to keep you happier as well.

Treat savings like a necessary expense, not a luxury.

Creating an emergency fund can help you when unex-pected expenses arise, such as car repairs or medical fees. You can also create a non-emergency fund for expenses in the future like a new down coat or spending cash for spring break. If having different accounts is a bit over-whelming, you can combine them, but make sure that you can differentiate between the two.

Make sure that you budget is balanced. After all of the expenses are paid, the goal is to

break even or have cash left over. If your budget turns out to be unbalanced, it is time to reflect, readjust, cut expenses, or increase your income.

By Ebony McCaksill

What to Do?��È�O�Á�Y�¼|b�¼8¼¼���±bO���b�¼´�|8Çb���Y�obY�¼|b�±�Fb|8Ç��±�¼��prevent falling for the promotion? Perhaps the simplest recom-

mendation is to pretend that the item is not free, but is instead

very cheap. For instance, Ariely suggests imagining that the tat-

too costs $1. At that price,

it is certainly below market

value, but it no longer has

the same effect as a prod-

ÁO¼�È�¼|����o�8�O�8��O�´¼¡In the above case, if

the customer would still

want the tattoo merely at

a cheap price, then choos-

ing the free option might

be the right choice. There

is still the chance of future

costs, but at least the cus-

tomer is making a sound

O|��Ob� F8´bY� ��� o�8�O�8��incentives and not sole-

ly because the tattoo is a

giveaway.

Reframing the CostsAnother suggestion is to

outline the hidden costs

of a transaction. This can

Fb� Y�noOÁ�¼� FbO8Á´b� ¼|b�costs are often disguised.

For example, if you re-

ceive a coupon for a free

soda with the purchase of

a hamburger, you might

tend to overlook that the

soda is not free; you still

have to pay for the ham-

burger. Similarly, if you

o�Y�n±bb�´b¼��n�´�b8�b±´����the basement of a dorm,

the cost of keeping and

maintaining these “free

speakers” includes pur-

chasing a bunch of con-

nector wires. The deal may

not be so great after all.

ConclusionNone of this is to sug-

gest that you should al-

ways turn down “free.”

Sometimes free is a great

��¼���¶� Ê�Á� o�Y� bÉ8O¼�Ê�what you are looking for at

�����8��o�8�O�8��O�´¼¡�Á¼�other times, the power of free can cause us to make decisions

we would otherwise not make.

In many cases, it can be helpful to consider what hidden

costs there might be. If the item still seems desirable, then go

ahead. If it doesn’t, free is not really free.

Back to the Basics: WHAT are Credit Unions, and Why Should you Care?

�¼|�Át|���́ ¼ÁYÊ� O�����O´V��¼�È8´���¼�Á�¼���¼|b�o±´¼�Y8Ê��n��Ê�́ Á��b±���¼b±�-

´|���8¼�8�o�8�O�8��¼bO|����tÊ�O���8�Ê�¼|8¼���O8�b�¼��8��Á�O��n�±¼8F�b�±b8�-ization: I did not really understand what a credit union was. While I initially assumed

that I must be the only one in the dark, after many of my peers responded with similar

O��nÁ´����È|b����8´�bY�¼|b��n�±�8�Ybo��¼���V���±b8��ÍbY�¼|8¼��8�Ê��b�~5b±´��Á´¼���Y�and smile whenever the term is mentioned without actually comprehending it. After

overcoming my initial embarrassment, learning everything I could, and interviewing

some credit union executives, I made two important discoveries: 1) credit unions are

actually really cool, and 2) many other people are in the dark just as I once was.

For those of you who have always nodded and smiled, it is time for Credit Union

101. What are credit unions, how are they different from banks, and why should you

O8±b�8¼�8��§�ϼ�o±´¼�t�8�ObV�O±bY�¼�Á����´�8±b�8O¼Á8��Ê�Çb±Ê�´����8±�¼��F8��´����¼|8¼�F�¼|�o�8�O�8����´¼�¼Á¼���´�|��Y�Yb��´�¼´V��8�b���8�´V�8�Y��nnb±���Çb´¼�b�¼�́ b±Ç�Ob´¡�bÊ��Y�this framework, they operate very differently:

Benjamin Graham, The

Intelligent Investor

A classical treatise on value in-

vesting, Graham’s 1949 book

has high praise from the Oracle

of Omaha himself: Warren Buf-

fett calls it “by far the best book

on investing ever written.”

John von Neumann and

Oskar Morganstern, The-

ory of Games and Economic

Behavior

The 1944 publication was in

b´´b�Ob�¼|b�F�±¼|��n�¼|b�ob�Y��n�t8�b�¼|b�±ÊV���qÁb�O��t�FÁ´�-ness and political strategy for

years to come.

Daniel Kahneman, Think-

ing Fast and Slow

A more recent publication writ-

ten by Nobel laureate Daniel

Kahneman in 2011 examines

dual modes of thinking and

delves into the question of why

humans are not always rational

thinkers.

ountless successful hedge fund

managers, investors, and busi-

ness magnates from Warren Buffett to

Bill Gates have praised the game of pok-

er and its positive implications on their

professional lives. Harry Truman used to

hold nearly nightly poker games where

he would invite members of Congress

and Supreme Court Justices to the White

House to play. He always paid his poker

debts by check, cognizant that anyone

who received one of his checks would

likely frame it, never cashing it.

However, this hobby is not exclusive

¼��¼|b�o�8�O�8���±�����¼�O8��b��¼b¡�+¼ÁYb�¼´�at Brown University have taken to playing

poker not only as a leisure activity, but

also to enhance skills integral to careers

��� ¼|b� o�8�O�8�� ´bO¼�±¡� +bÇb±8�� ´¼ÁYb�¼´�|����t� ¼��È�±�� ���o�8�Ob�Á����t±8YÁ-

ation invest in the stock market and in

their poker skills – the latter sometimes

outperforming the former. Some have

even come to view trips to the casino as a

dependable source of income.

Jonathan Greb, a junior at Brown

and an avid enthusiast of the game, cal-

culated that he earns an average of forty

dollars an hour during each trip to the

casino. He began playing poker at age

thirteen purely for recreation; he had no

�Yb8��¼�O�Á�Y��±�Çb�Fb�boO�8�¡�,�Y8ÊV����-

athan does not think of poker as crucial

¼��́ ÁOOb´´����¼|b���Çb´¼�b�¼�8�Y�o�8�O�8��spheres but he believes that it undeni-

ably bolsters experience with risk man-

8tb�b�¼� ¼|8¼� �´� Y�noOÁ�¼� ¼�� �F¼8��� �±��±�to managing a considerable amount of

money. He recommends poker as a hob-

by for people who strive to go into the

��Çb´¼��t�FÁ´��b´´�FÁ¼� O�8��´� �¼� �´� «Ybo-

nitely not a prerequisite.”

Hunter Massad, also a junior at

Brown, began playing poker at a young

age, initially taught by his father, and

quickly developed a penchant for the

game. He played online, engaged in

family-wide tournaments, and soon real-

ized that there was more to poker than

gambling for the sake of enjoyment or

poKer An Art, A Lesson, or Simply Gambling?

bÇb�� �±�o¼¡� (��b±� �±�Ç�Yb´� ��±b� ¼|8��8� �Á±b�Ê� o´O8�� Y�Ç�Yb�Y¶� �¼� �±�Ç�Yb´� ��-

valuable experience for a future career

��� o�8�Ob¡� �b� Á�Yb±´¼8�Y´� ¼|8¼� È|��b�it must be treated as an educational ex-

�b±�b�ObV� ¼|b� o�8�O�8�� ±�´�� �´� ��¼� ¼�� Fb�disregarded. Hunter has dedicated time

and effort to improving his technique, a

commitment he deems fundamental to

success. Playing consistently is not good

enough for him. In order to be good, to

perfect the craft, and to actually reap the

Fb�bo¼´V���8Êb±´��Á´¼�±b8Y�F���´����¼|b�art of poker and learn from the absolute

Fb´¼¡� «(��b±� �´�®¼� �Á´¼� 8F�Á¼� o�8�ObV� �¼�is about emotional control in the sense

that you disobey your emotions to obey

rationality.” Poker has taught him to val-

ue logic above emotion not only from an

investing standpoint but in various facets

of his life as well.

While there is value in the game, we

must not lose sight of the fact that it per-

petuates a habit of gambling. Can aspir-

ing investors legitimately gain invaluable

skills by playing poker? Keeping in mind

of the possibility of loss is critical. A play-

er has to be willing and comfortable with

the prospect of going into a game and

leaving with nothing but regret. Poker –

particularly in a casino where the stakes,

competition, and pres-

sure are very high – is not

for the timid. Ultimately

there is value in the game

n�±�¼|�´b�È�¼|�o�8�O�8��8´-pirations, though playing

is not a necessity. Poker

teaches risk, strategy,

probability, human behav-

��±V� 8�Y� F�Áno�t¡� �¼� O±b-ates the unique rush that

comes from gambling,

having money on the ta-

ble, and the possibility of

winning or losing it all.

But beyond the thrill and

the Wall Street ambition,

the educational impera-

tive trumps all.

1. ��¼~n�±~�±�o¼: While banks operate as

n�±~�±�o¼� FÁ´��b´´� O�±��±8¼���´� �È�bY�by private investors, credit unions are

��¼~n�±~�±�o¼� o�8�O�8�� O���b±8¼�Çb´¡�This means that at the end of the year,

banks pay out declared earnings only

to stockholders, whereas credit unions

pay back their earnings to members (ac-

count-holders) directly in the form of

lower loan rates and higher savings rates.

2. Members, not Customers: Unlike

banks, which are open to the general

public, credit unions serve the interests

�n�8� ´�bO�oO��b�Fb±´|��V�È|�O|� �´� ¼Ê��-cally based on a common bond, such as

locality (New England FCU) or industry

(Navy Federal CU.) When you become a

member and deposit money, you are not

a customer; rather, you are actually buy-

ing shares in the company and becom-

ing part-owner. As a co-operative, cred-

it unions are run by the members, for

the members.

3. Favorable Rates: Compared to banks,

credit unions have lower rates on loans

and higher rates on savings on average.

The higher rates of return apply to both

savings accounts and to more complex

´8Ç��t´� �±�YÁO¼´V� ´ÁO|� 8´� Ob±¼�oO8¼b´�of deposit. Additionally, credit unions

typically have lower banking fees than

large commercial banks when it comes to

checking account fees or penalty fees for

overdrawing your account.

4. Customer Service: Credit unions

struggle to match the convenience of-

fered by larger banks like Bank of Ameri-

ca, but they do challenge the larger banks

when it comes to customer service and

customer satisfaction. Known for their

outstanding customer service, credit

unions go beyond commercial banking

in their commitment to their members

and community.

TOP 3FINANCE BOOKS

TO READ

by Julia Verbrugge

by Ana Rosenstein

By Carter Johnson

Personal Finance "e Intercollegiate Finance Journal December 20136 7

In essence, credit unions are similar to banks in the services they offer, but different in the way that they operate. Though the

contents of this article may seem elementary, I am not ashamed of my previous ignorance because it highlights the principal pain

point that credit unions are currently confronting: Gen-Y is simply not familiar with them. Go ask a few of your friends whether they

can really explain how a credit union functions. If they cannot, spread the knowledge. I am not saying that we should all become

O±bY�¼�Á������b�Fb±´�¼�Y8ÊV�FÁ¼�Èb��Á´¼�Fb�8È8±b��n��Á±�o�8�O�8����¼���´¡

a c

�

1.

“Credit unions are similar to banks in the services they offer, but different in the way that they operate.”

"e Intercollegiate Finance Journal December 2013 Personal Finance

2.

3.

Students have to spend a lot of money without earning what most people need to survive. Expenses can quickly rack up from items

like gourmet food to textbooks, to buying winter clothes for the imminent ice age that we call “winter.” As college students, we

need to learn how to save money anywhere we can. We need to scrimp. So without further ado, here are 10 easy ways to scrimp.

marriage & ACQUISITIONS

|b�F�ttb´¼�o�8�O�8��YbO�´�����n�Ê�Á±���nb��8Ê���¼�Fb�o-

nancial at all. As much as marriage is about love and

O����¼�b�¼V��8±±�8tb�O8��8�´��Fb�O��´�Yb±bY�8�o´O8���b±tb±�between two people and should be approached with the same

O8Á¼����8´�È�¼|�8�Ê��¼|b±�o�8�O�8��YbO�´���¡� �,|b±b�8±b��8�Ê�o�8�O�8��Fb�bo¼´�¼��F�¼|��8±±�8tb�8�Y��b±tb±´V�FÁ¼�b8O|�O��b´�with risks. Here are some ways to ensure your post-marriage

o�8�O�8����¼bt±8¼�����´�8´�´���¼|�8´���´´�F�b¡

Revis! You" BudgetÏ�Ê�´ÁOOb´´nÁ���b±tb±�È����|8Çb�¼���8�b�o�8�O�8��8Y�Á´¼�b�¼´�for the new addition to the company. The easiest way to im-

�±�Çb�Ê�Á±�o�8�O�8����8�� �´� ¼��±bÇ�´b�Ê�Á±�FÁYtb¼¡� � �¼� �´� n8�±�Ê�simple to create a budget for yourself, but budgeting for both

you and your partner presents a

completely new challenge. You

È���� �±�F8F�Ê� o��´|� n8´¼b±� ¼|8��Congress, but it will take some

time to carefully create a budget

that accommodates the needs of

each person. Understand that

you will be varying degrees of “spenders” or “savers” and make

8�FÁYtb¼�¼|8¼�±bqbO¼´�¼|b´b�Y�nnb±b�Ob´¡

Disclosur! of A##ets and LiabilitiesA savvy business owner would never enter a business contract

without analyzing its strengths and weaknesses and the same

holds true for marriage. The emphasis here is to disclose your

liabilities. As potentially recent college students, your liabilities

will likely be more pressing than your assets. It is particularly

important to fully discuss any student loan debt you may have

accumulated. Each person may have varying amounts of debt,

which means you should work together to create a manageable

payment plan.

Separat! AccountsMergers are all about sharing and shareholders. Sharing is an

important part of any relationship, but immediately signing up

for joint credit with your spouse can be dangerous. For exam-

��bV��n���b��8±¼�b±�|8´�8�́ �t��oO8�¼�Ê�È�±´b�O±bY�¼�|�´¼�±ÊV�n8����t�

to make payments on a joint account can lower the other per-

son’s credit score. Another reason to maintain separate credit

cards and bank accounts is to help monitor spending habits and

optimize your budget. Having an individual spending record

O8��Fb�Çb±Ê�Ç8�Á8F�b�È|b��8�8�ÊÍ��t�Ê�Á±�O���bO¼�Çb�o�8�Ob´¡��However, there are some instances when sharing an account

is more logical. For example, if you want to secure a mortgage

based on the income of both you and your spouse, it may be

��±b�Fb�boO�8��¼��´�t��8�����¼�8t±bb�b�¼�i�bÇb��8¼�¼|b�±�´���n�adverse effects to your credit score. You will suffer with higher

interest rates if your spouse has a lower credit score than yours,

but you will be eligible for a larger loan amount.

Understand th! RisksAs with any merger or acqui-

sition, marriage comes with

both risks and rewards. The

risk of divorce is more than just

emotional. In the unfortunate

event of a divorce, both parties

È���� n8Ob� O�´¼´V� ±bt8±Y�b´´��n� ¼|b�o�8���Á¼O��b¡� � Çb��8´´Á�-

ing the most equitable allocation of assets, there will still be

´�t��oO8�¼��bt8��nbb´�8´´�O�8¼bY�È�¼|�8�Y�Ç�±Ob¡���n�8´´b¼´�8±b�Y�´-tributed unevenly, there is an even greater cost to divorce. To

hedge against this risk, it can be helpful to create a prenuptial

agreement. Nobody gets married and expects a divorce, but it is

in your best interest to protect yourself. Any big merger always

runs the risk of falling through, so it is important to understand

these risks and take steps to avoid them.

Integration�8±±�8tb��8Ê���¼�´bb�����b�8�o�8�O�8��YbO�´����8¼�o±´¼V�FÁ¼��¼´�o-

nancial implications should be evaluated with the same thought

process as any other investment. By carefully analyzing your

spending habits, you can create a budget that works for both

people. You can also make intelligent investment choices if you

have a full understanding of each other’s debt and credit his-

¼�±Ê¡��3|��b��8±±�8tb�|8´�o�8�O�8��8�Y�b��¼���8��±�´�´V��n�Ê�Á�follow these guidelines, your merger will have a much smooth-

er integration.

by Christian Ackmann

Name: Eric Han

10 Easy Ways to Scrimp in College

"e Intercollegiate Finance Journal December 2013 Personal Finance 9

“The biggest financial decision of your life may not be financial at all.”

Do not buy textbooks from the University Bookstore.

5�Á�o�8��Ê�otÁ±bY��Á¼�Ê�Á±�´O|bYÁ�b�n�±�¼|b�´b�b´¼b±�8�Y���È�Ê�Á�have to buy all the required texts. Cool. There goes another $1000.

There is no point in buying a new and overpriced textbook from the

Bookstore. Instead, ask friends and peers who have already taken the

course and get that “friend discount.” At the very least, buy or rent it

online for a third of the price. You can even use a comparison shop-

���t�ÈbF´�¼b����b�F�tÈ�±Y´¡O���¼��o�Y�¼|b�Fb´¼�Yb8�´�8Ç8��8F�b¡

1

Get the meal plan that is right for you.

Your friend runs 5 miles a day, benches 450 pounds, and weighs 320

pounds of raw muscle. He is on the highest meal plan your university

offers and is devouring 30 egg whites a meal (those poor chickens).

But the real question is, “Do you even lift, Bro?” No. So save your

money and pick the right meal plan.

2

Limit how much you eat out.I know restaurant food is delicious, but you are already on a

prepaid meal plan. You still want to go out with your friends. I get it.

Just try to limit yourself.

3

Amazon and Ebay.You need a new winter jacket, jeans, bed risers, and the list

goes on. Going to the mall leaves you with a receipt of $368.65. On

top of that, $50 of the bill came from tax. Utilize Amazon and Ebay

where the retail prices are cheaper and there is no tax. Shop from

home instead. You will save money and you will not have to waste

those precious calories walking around the mall.

4

In your leisure time, do something free.Read a book from the library (if you are not already burned

out from reading all those Economics books), play pick-up soccer, or

enjoy the company of friends at the park. Movie theaters are over-

rated anyways.

5

Be smart about traveling.Walk anywhere you can. Walking is free. If it is too far, see

if your university has student discounts for the bus, trolley, or other

public transportation. You paid for that tuition, so you might as well

take advantage of cheaper transportation for the next four years.

6

Create a budget.+b¼�8�o±��8��Á�¼��n����bÊ�¼��8���È�Ê�Á±´b�n�¼��´�b�Y�n�±�

the week or month and stick to it. Discipline is key.

7

Save on the little things.This means drinking tap water over expensive soda (you

would not want the freshman 15 anyway). Do not buy music. Utilize

Spotify, Pandora, YouTube, or the actual radio if you are feeling old-

school. When you need caffeine, make your own tea or coffee. The

possibilities are endless.

8

Split.A gorgeous girl or boy is in front of you. You want to impress,

but the bill at the end of dinner is $150 (Did you have to get steak?).

If you pay for it all yourself, you will be in tears later, pulling your hair

out, and questioning the cruel laws of the world and universe. Just

split it. No shame.

9

If all else fails, date a generous sig-nificant other.

If you are lucky, he or she will buy you expensive, gourmet meals,

unless your date is like you and follows number 9 of this list. Keep

“forgetting” to bring that wallet to dinner. This is your coupon to at

�b8´¼�oÇb�n±bb��b8�´¡�Ï�Y�È|b��|b��±�´|b�O8¼O|b´���V�Y��¼|b��8Ê~7V�8�Y�go “On To The Next One.” Who needs love when you have food?

10

T

Personal Finance "e Intercollegiate Finance Journal December 20138

score with your credit score

ypically, we associate credit

scores with borrowing money,

but today, insurance companies

and even employers are making use of

credit scores. Credit scores are good in-

dicators of a person’s behavior and pro-

spective employers can use this informa-

tion to determine whether an applicant

might be a risky employee. Having a high

credit score can allow you to acquire low-

er insurance premiums, more favorable

credit card terms, and higher credit lines.

A credit

score is de-

termined by

a complicat-

ed formula

that is not

made public.

The generic FICO score can range from

300 to 850 and is based mainly on your

payment history (35%) and credit utili-

zation (30%). Other factors include the

length of your credit history (15%), types

of credit used (10%), and recent searches

for credit (10%). The three credit bureaus

(Experian, TransUnion and Equifax) are

responsible for calculating this score.

Generally, a score of 680 or higher is con-

sidered to be a good credit score. A high-

er score is indicative of less risk. Lenders

are more inclined to lend to individuals

with high credit scores since they are less

likely to default on payments.

Here are a few things you can do

to improve or maintain your high

credit score:

Check Your Credit Report For ErrorsYou are responsible for ensuring the

accuracy of your credit report. Every

twelve months, you can go to www.an-

nualcreditreport.com and obtain a free

credit report from Experian, TransUnion,

and Equifax. These reports will not pro-

vide your exact credit score, but they will

±bqbO¼� Ê�Á±� b�¼�±b� O±bY�¼� |�´¼�±Ê¡� +��Ob�35 percent of your credit score is based

on the payment history of your credit

accounts, it is import-

ant to make sure that

this information is ac-

curate. Although cas-

es of identity theft do

occur, these can be

avoided by checking your credit reports

for errors or by placing a security freeze

on all of your credit reports.

Make Timely PaymentsMaking payments on time will result in

a positive credit history which is an im-

portant factor in calculating your credit

score. And if you do miss a payment, pay

it off quickly so that the harm does not

accumulate.

Do Not Apply For Too Many Credit Cards�Á�¼���b�8����O8¼���´�´�t�8��o�8�O�8��trouble and can actually hurt your credit

score. Even applications for retail credit

cards, such as department and specialty

stores, can have this effect.

Keep Old Credit Cards Active Simply having old unused credit cards

will not positively affect your credit his-

tory. It is important to use those cards

periodically so that they will be reported.

A longer credit history is always a positive

factor when calculating a credit score.

Closing an account will remove that cred-

it history from your report. Additionally,

once that card and its associated credit

���b� �´� ±b��ÇbY� n±���Ê�Á±��±�o�bV� Ê�Á±�credit utilization ratio (total outstanding

balance divided by total credit limit on all

your cards) will increase and negatively

impact your credit score.

Use Only 30 Percent Of Your Credit LimitExperts recommend that you use

around 30 percent of your credit limit

each month on each credit card and

never carry a large balance. Should

you need more credit, utilize another

card. You can also make more than one

payment a month in order to use less

than 30 percent of your credit limit.

Micropayments will lower your credit

utilization ratio, which accounts for 30

percent of your credit score.

Keep in mind that building a credit score

and credit history is an active process.

Following these steps will lead to greater

control over your credit score, lines of

credit, insurance rates, and even career

prospects.

by Perry Feldman

Personal Finance "e Intercollegiate Finance Journal December 2013 "e Intercollegiate Finance Journal December 2013 Personal Finance10 11

Your investment has a longer time to grow.

Even though the annual rate of

return may be small, the com-

pounded return over many years

can translate into large gains. Set

aside a little money now, and

reap great rewards in the future.

,8É�Fb�bo¼´¡If a portion of income

is placed in a Roth IRA (Individ-

ual Retirement Account), as op-

posed to a traditional IRA where

earnings are subject to tax, all

future distributions are tax free.

Because the account balance will

grow, it is typically better to pay

taxes now rather than on a larger

amount of money in the future.

You will have more o�8�O�8�� ±b´���´�F���-ties in the future.

There might be student loans

and textbooks to buy, but it is

even harder to set aside money

to save once you leave school

and will have even larger living

expenses.

Gain saving experience.ÏY��¼��t� o�8�O�8��Ê�

responsible habits at a young

age translates into a higher like-

lihood of keeping a balanced

budget, paying bills on time, and

being motivated to contribute to

retirement funds in the future.

Financial security in old age.The future of social se-

curity at present appears

uncertain, so it is important to

´8Çb� ��È� ��� �±Yb±� ¼�� ±b�8��� o-

nancially stable in old age.

5 Reasons to Start

Saving Now

by Lauren Tsai

“Building a credit score and credit history is an active process.”

The digits

300 - 850generic FIcO score range

35% Percent of total credit score

use this percent of your credit card

limit a month

payment history

30%

15%

10%

10%

how often you use credit cards

length of history

Types of credit used

amount of recent credit searches

<30%

>680considered a good

credit score

}t

Speaking from Experience: How to Find and Learn from your Summer Internship

Internship, Conference, or Job in NYC? Here Are 10 Ways to Save in the City

Careers & Finance "e Intercollegiate Finance Journal December 201312 "e Intercollegiate Finance Journal December 2013 Careers & Internships 13

careerS & InTernShIPS 13 Internship, Conference, or Job in

NYC? Here Are Ten Ways to Save in the City

14 Beating the Bot: Why Your Resume May Never Reach Human Hands

16 Student Spotlight: Laura Flanagan & Danielle Waldman

17 Learning to Tango: Case Interview Style

18 Thread of Life: Doctors in Danger 7��b´

Visit theifj.com/careers--internships for these articles:

Why Everyone Should Attend Conferences

The Five People You’ll See At An Info Session

Five Things A Company’s Website Won’t Teach You

also In This Section

by Tiffany Chang

major part of the fall semester for any sophomore or

junior is spent in the grueling and browbeating search

for the perfect summer internship. With the abundance of ap-

plications, info sessions and other recruiting events on campus,

it is easy to get overwhelmed and lose sight of the goal: get-

ting an experience in which you can learn, grow, and—if you’re

lucky—discover what exactly it is you want to do with your life.

To gain more insight, I spoke with three Brown students who

have had incredible summer internship opportunities.

Learning from the Job«K�Ê� ��¼b±�´|��L�o��bY� ¼|b�t8��Fb¼Èbb���Ê�Á�Yb±´¼8�Y��t��n�banking and what banking is in the real world,” Clarence stated,

8YY��t� ¼|8¼� �¼� ±b8��Ê� ´���Y�obY�|�´� ��¼b±b´¼� ���F8����t� 8�Y�|�´�

wish to pursue it full-time.

Angel agreed—while attending information sessions are a

great way to get an initial introduction to a company, “[there’s]

nothing like actually being on the job, even for the summer, to

see what it is like…there is only so much information sessions

can tell you about a job,” she says. She adds that interning is

¼|b�b8´�b´¼�È8Ê� ¼��otÁ±b��Á¼�È|8¼� �¼� �´� ¼|8¼� Ê�Á� ��Çb��±�|8¼bV�8�Y�b�O�Á±8tb´�´¼ÁYb�¼´�¼|8¼�bÇb���n�Ê�Á�Y�Y�®¼�b���Ê�8�´�bO�oO�internship, you can still gain insight on what you don’t want to

do—which helps narrow your future job search.

Myron realized after interning at IBM that he did not enjoy

working at such a large corporation. “I felt that my contribution

was lost—I couldn’t see the results of what I was doing.” He

instead hopes to intern at a start-up this coming summer.

Finding the “Right” Internship for YouAngel advises students to “look widely” beyond the obvious

O|��Ob´V�´ÁO|�8´�¼|b�o±�´�È|�O|�O��´�Yb±�±�È��8�O�±b�´O|���¡�«�¼��´�±b8��Ê�b8´Ê�¼��tb¼�´¼ÁO��¼|�����t�¼|b�|8�YnÁ���n�o±�´�¼|8¼�come recruit on campus are the only options… But there are

actually tons of opportunities outside of that.” She instead ad-

vocates students on the internship search to take initiative in

researching different career paths and internship options.

Myron says that you should look past the name of a compa-

ny when applying for internships, as what you truly enjoy may

turn out to be different from initially expected.

Clarence echoed this view by advising students to remember

to “diversify their applications” by applying to a large variety of

o±�´¡���ÈbÇb±V�|�È�Y��Ê�Á�otÁ±b��Á¼�Ê�Á±���¼b±b´¼´§�«,8���¼��as many people as possible. Make connections,” says Clarence—

through hearing others’ experiences, you can more easily gauge

what you would like to spend your summer, and future, doing.

�������Ï�tb��Fb��bÇb´�¼|8¼�¼8����t�¼���b���b�n±���Y�nnb±b�¼�ob�Y´V��Á¼´�Yb��n�¼|b�o±�´�È|�O|�±bO±Á�¼����O8��Á´V��´�|b��nÁ�U�«Ï�Á�´�are a great place to start—they are usually happy to chat!”

a

clarence ho '14concenTraTion: Applied Mathematics – Economics

inTernship: Bank of America Merrill Lynch, Invest-

ment Banking

angel lee '14concenTraTion: Economics

inTernship (1): Bank of America Merrill Lynch, Invest-

ment Banking and Sales & Trading

inTernship (2): McKinsey & Company

Myron lam '14concenTraTion: Economics and Development Studies

inTernship: IBM, Business Intern

“Interning is the easiest way to figure out what it is that you love or hate.”

“Look past the name of the company when applying for internships.”

For the giggles:

The Upright Cit-

izen’s Brigade has

weekly shows that

range from free to $15

dollars. Chances are

you’ll see one of your

favorite comedians. I

saw Amy Poehler four

times…for free!

For commuting:

Buy a monthly

MetroCard to com-

mute. For $113 dol-

lars a month, you can

ride any subway train

as many times as you

want without hav-

ing to rack up hefty

taxi charges.

For living: Sub-

lease instead of

spending on university

housing. With a sublet,

you’ll probably have

air-conditioning and

won’t have to pay for a

meal plan with the uni-

versity you’re living in.

For the Broad-way - inc l ined :

Want to see the hottest

musical on Broadway?

Camp outside for Stu-

dent Rush tickets on

a Saturday morning.

Feeling lucky? Enter

the musical’s daily lot-

tery ticketing system

for discounted tickets!

For those over 21: Buy your bev-

erages before heading

out on the town! New

York City bars are no-

toriously expensive.

Spend $20 dollars for a

couple of weeks rather

than on one drink.

For food: Bring

your lunch to

work. Buying lunch in

midtown every day can

rack up some serious

charges. Head to the

supermarket and pack

your lunches to eat

with co-workers who

are doing the same.

For shopping:

If you’re an im-

pulse spender, head

to trendy thrift stores

like Beacon’s Closet or

try your hand at a sam-

ple sale.

For general life:

Start saving mon-

ey now if you’re look-

ing to be in the city this

summer. It’ll help you

cover initial moving

costs and possibly your

o±´¼����¼|®´�±b�¼¡

G r o u p o n s :

If you’re looking

for a neat weekend ad-

venture or a fancy meal

at half the cost, New

York City Groupons

have tons of discount-

ed packages.

For an o c e a n

view: Take a free boat

trip. Visits to Gover-

nor’s Island by boat

are free. Pack a cheap

lunch and enjoy a

lunch on an island

for free.

by Mark Valdez

1

2

3

4

5

6

7

8

9

10

Beating the Bot: Why Your Resume May Never Reach Human Hands

e have all heard the super-urban myth that a recruiter will on average spend no more than

6-10 seconds looking at a resume; alright, so what’s new? The truth is, even that estimate is being generous. Statistically speaking, the average time spent on a re-sume is probably closer to 0 seconds because there’s a high chance that most resumes will never even reach the recruiter.

Large companies receive thousands of resumes a month, sometimes just for one position. Even at 6 sec-onds a resume, it’s doubtful that anyone has the pa-tience or compassion to go through every resume. Re-cruiters are people, too— and as we know: ain’t nobody got time for that.

That’s why over 90% of large companies use resume screening softwares (called Applicant Tracking Sys-tems—creepy) to make preliminary cuts to the applicant pool. And if you’ve ever been improperly/awkwardly au-to-corrected, or struggled with a temperamental printer, then you know that technology has its limits.

Most of these software packages use parsers, pro-grams that attempt to make sense of human language for computational analysis. These buggers go into your resume, strip it of all of its pretty formatting, chop up the content into strings of text, sort the pieces into rel-evant categories like contact information, education, and technical skills, and spit out a score based on pre-´b¼�´�bO�oO8¼���´¡�+��b¼��b´�bÇb�� ¼|b�´�8��b´¼�Yb¼8��´�can ruin your resume’s chances of survival, so it doesn’t hurt to know the system and play by its rules. Here are some tips to make sure your resume—and you—gets a ot|¼��t�O|8�ObU

A picture’s worth a thousand… errors. Images, graphics, and logos can trip up a pro-

gram expecting strings of text. Instead, include the URL �n�Ê�Á±�����bY����±�o�b�È|b±b�Ê�Á�O8��Á���8Y�8�|b8Y-´|�¼V�8YY�����´V�8�Y�bÇb��8¼¼8O|�o�b´¡

Go easy on the formatting. Avoid using features like headers and footers,

tables, or columns. The software may have trouble pro-cessing the information or may ignore it altogether.

Keep the font plain and simple. This is common sense, but use conventional

fonts (some sources even recommend sticking to strictly sans-serif fonts) that are standard on common operating systems. You don’t want your amazing summer intern-

ship to become a bunch of ☐☐☐☐.

Be the match. Make sure to know the job inside out, and tailor your resume to it. A targeted approach is more likely to be effective than a one-

´�Íb~o¼´~���b�´O8¼¼b±nb´¼¡�*b´Á�b´�8±b�´O�±bY�F8´bY����±b�bÇ8�OÊV�´���8�b�´Á±b�¼��O���bO¼�Ê�Á±�bÉ�b±�b�Ob��±�Ê�Á±���¼b±b´¼´�¼��¼|b�́ �bO�oO���F¡�,8����t�to current employees is an excellent way to get a sense of exactly what the company is looking for in its new hires. Again, LinkedIn is a great resource for this.

Alternatively, if while reading this you’ve: (a) rolled your eyes, (b) groaned loudly and with lung-engaging passion, or (c) lost a little faith in the system – congratulations, you’re human! And for you, there’s some more good news: this binary-beast is not yours to slay.

You should still follow these simple resume-building rules because they’re generally good practice, but additionally and comparatively to all of the extraneous fuss and formatting issues that go alongside making a resume, putting on a suit or slipping into your power pumps for an info session shouldn’t seem so bad anymore. The recruiters are right there! In ¼|b�qb´|l�5�Á�O�Á�Y�bÇb��¼�ÁO|�¼|b���¼|�Át|�Ê�Á��±�F8F�Ê�´|�Á�Y�®¼�¡

Careers & Finance "e Intercollegiate Finance Journal December 2013 "e Intercollegiate Finance Journal December 2013 Careers & Internships14 15

by Kaden Lee

“Sometimes even the smallest details can ruin your resume’s chances of survival, so it doesn’t hurt to know the system and play

by its rules.”

THE EASY STUFF

Remember “keyword search”? Keywords: those hot, young things from 2002 have grown up,

suited up, changed their names to “buzzwords,” and are now working in the recruiting world. If a job description contains a word more than twice: O|8�Ob´�8±bV� �¼®´� ����±¼8�¼¡�*bqbO¼� ¼|b´b��bÊÈ�±Y´� ���Ê�Á±� ±b´Á�b�È|b��applicable.

Location, location, location...? Surprisingly, addresses can limit eligibility for a position! Especial-

ly for summer internships, companies that do not provide housing allow-ances may limit their search to local candidates. (If you don’t believe me, I almost got passed over for my summer position because of this very reason. Luckily, they gave me a second chance.) For this, it doesn’t hurt to note in your resume or in your cover letter that you are willing to relocate.

So take their business cards and make some noteworthy connec-tions... Go get ‘em, tiger.

1

2

3

4

5

6

NEXT LEVEL TACTICS

W

Student Spotlight

How did concentrating in Psychology prepare you for an internship at American Express?I get that question a lot, especially from bosses and job inter-

views. My internship with American Express was pretty much

straight business. I was working in operations and marketing.

I wouldn’t say that psychology as my discipline has applied

all that much as far as my classes. I would say that Brown has

prepared me for working hard, handling late nights, thinking

critically, and being a good writer more so than learning about

abnormal psychology and what schizophrenia is.

What was your day-to-day role at Amex?It was a very formally set up and structured program. Like many

�8±tb�O���8��b´V�¼|bÊ�Á´b�¼|b���¼b±�´|���8´�¼|b�±�q�È���¼��nÁ��~time positions. There were 120 interns, half undergrad and half

grad students. It was ten-weeks, and I had my own individual

�±��bO¼�¼|8¼�È8´��Ê�«F8FÊ¡¬��Ê�´�bO�oO��±��bO¼�È8´����±�Ç��t�a system, and I talked to a lot of people to ask “What’s wrong

with this process right now?” and “What slows you down?” I did

a lot of interviews in the beginning trying to learn how the sys-

tem runs. Basically, Amex puts out marketing campaigns such

as emails or “junk” mail. There are a lot of steps that go into de-

signing the mail piece and making sure that it goes to the right

address; there are a lot of checks. The system that they were

using was slow, and that was what I was trying to improve over

the summer. Day-to-day would include interviewing, thinking

8F�Á¼�|�È�¼��oÉ��¼V�Y���t��Ê��È��8�8�Ê´b´V�8�Y�¼|b��¼�È8±Y´�the second half it was about my presentation and putting my

PowerPoint together.

What advice would you give to current undergraduates for o�Y��t�8����¼b±�´|��§People hate to hear this but I would say: start early. I had this

oh-my-god-what-am-I-going-to-do-with-my-life moment as I was

going into my junior year. It stressed me out, as it stresses out

8���´b���±´¡�Á¼���|8Y�¼|8¼����b�¼�8�Êb8±�Fbn�±b�8�Y���±bqbO¼-ed, decided and did all of my applications. I had the chance

to hit all of the deadlines that were in November, December,

January and February, and I wasn’t spending that time worrying

about what I was going to do. If I had missed that opportunity

I wouldn’t be in the place where I am now, having nothing to

worry about my senior year.

laura Flanagan

Careers & Finance "e Intercollegiate Finance Journal December 201316

Now, will this method of transparency land you a job?Probably not, unless your interviewer decides to hire you on the spot simply to avoid having to hear another How I Worked on a

Team / Handled a Crisis / Demonstrated Leadership Skills anecdote. Otherwise, though, it seems our best bet to land that elusive

entry-level gig is to put on our Consultant hats with all the unabashed enthusiasm of a Broadway hopeful. And to those who call

us borderline brainwashed semi-robots: that’s Junior Analyst robot to you.

Learning to Tango: Case Interview Style

s fall interview season draws to a close, those of us who dusted off our parents’ business attire for interviews and company

presentations just last month can now raise our glasses to new jobs, new opportunities, and new appreciation for the

bizarre role-play that is the Case Interview.

+��bÈ|b±b�Fb¼Èbb��¼|b�o±´¼�È8Çb��n�8���?��¡�q�b±´�¼8�bY�¼��bÇb±Ê�bÉ��´bY�t�8´´�´Á±n8Ob����O8��Á´�8�Y�¼|b�O��O�ÁY��t�handshakes complete with a “We’ll be in touch,” we have somehow morphed into marionettes with Marc Cosentino and Victor

Cheng tugging at our wooden wrists to the tune of “market sizing,” “value-chain microanalysis,” and “management needs to hedge

currencies, stat!”

Want to know how many lavender-scented candles are sold every year in Iceland? Done. Calculate our imaginary client’s share

�n�¼|b�Yb�¼8��q�´´��8±�b¼§����´Èb8¼¡�5b¼�´��b�O�±�b±��n��Á±����Y´��¼|b�O�±�b±���¼�OÁ±±b�¼�Ê�Y����8¼bY�FÊ��b±Ob�¼8tb´V�t±�ȼ|�±8¼b´V�8�Y�«(±�o¼�k�*bÇb�Áb�j��´¼¬��´¼����Fbt´�¼|b�¦Áb´¼�����n�È|b¼|b±�¼|�´�´��Á�8¼���V�´��±�¼Á8��ÍbY�8´�¼��±b´b�F�b�8�Ob±b����8��courtship dance in verbal form, simply measures our ability to put on a show. What if we—and our interviewers—actually said what

we were thinking? Aaand, action:

"e Intercollegiate Finance Journal December 2013 Careers & Internships 17

To read more about Laura and Danielle’s experiences, including Major Do’s & Don’ts, please visit www.theifj.com

Laura Flanagan ’14 is concentrating in Psychology. She is a member of Kap-

pa Alpha Theta, a singer in Disney A Cappella, and a trained mediator. Last

summer Laura interned at American Express in Operations and Marketing.

How did you know that you wanted to go into investment F8����t�±8¼|b±�¼|8��8��¼|b±�8±b8��n�o�8�Ob§I wanted to go into investment banking because I thought it

was the best job out of college where you can make the biggest

impact on companies as a 21 year old. There is not another

industry to get exposure at a young age and so quickly. I always

knew I wanted to go into business and I felt that investment

banking would be the perfect crash course after Brown.

3|8¼�Y�Y�Ê�Á�Y��¼��Y�nnb±b�¼�8¼b�Fb¼Èbb��¼|b�o±�´����¼|b�industry? What was your due diligence process like?���8Yb� ´Á±b� ¼�� tb¼� 8� ´b�´b��n�È|8¼� ¼Ê�b��n��b���b� b8O|�o±��8¼¼±8O¼bY¡� 8O|� o±�� |8´� 8� Çb±Ê� Y�nnb±b�¼� OÁ�¼Á±b¡� ���Y��t� �Á¼�who you mesh with best and who is fun to talk to is important

because you spend a lot of time with them.

What mistakes do you see Brown students making that you think they should change?The number one thing people need to do and biggest mistake

is not networking enough. I feel that networking is ultimately

the most valuable thing. Another mistake is thinking that just

FbO8Á´b�Ê�Á®±b���¼�8�o�8�Ob��8��±V�Ê�Á�O8�®¼�t����¼��o�8�Ob¡�,|b´b� o±�´� 8±b� ������t� n�±� ´�8±¼V� ��¼b±b´¼��t� �b���bV� È|�O|�8±b��8�Ê�±�È��´¼ÁYb�¼´�FÊ�Ybo��¼���¡� �b���±b�¼|��t��´�¼|8¼�people take classes that they aren’t interested in. This is the

ultimate mistake. If you aren’t passionate about what you are

doing, you won’t have as much to say and you won’t do as well.

,8�b�8YÇ8�¼8tb��n���b��OÁ±±�OÁ�Á�¡�,|b±b� �´���¼|��t�´�bO�oO�¼|8¼�o±���´�������t�n�±V����b�n�±�bÉ8���b�¼8���t�8�´�bO�oO�bO�-

nomics class.

What was your day-to-day role at Morgan Stanley like?There was no typical day at Morgan Stanley. You get on a ton

Y�nnb±b�¼�´¼8no�t´�8�Y��±��bO¼´V�È�±���t�����Á�¼���b� ���8�Y8Ê¡�I did due diligence for an Initial Public Offering (IPO), built a

model for a Leveraged Buyout (LBO), and went to meetings

about potential pitches. Other days, I would do research for

a managing director. It really depended, and it could change

by the hour. The best part was the breadth of all the different

things you were learning and the variety of your day.

daniiele Waldman

Danielle Waldman ’14 is concentrating in History. She is the president of

Challah for Hunger and vice president of Women in Business. Last summer,

Danielle interned at Morgan Stanley in the Media, and Telecommunications

Group in the Investment Banking Division, and will start in the fall of 2014

as part of a two-year full-time analyst program.

by Alisa Owens

InTervIeWer hOPeFul aPPlIcanTCome on in! I vaguely recognize you from an info session...weren’t you the one hoarding hors d’oeuvres and SnapChatting during my presentation?

Yep! I’m hoping that gaining “face-time” there will make up for when

I mispronounce the company name during this interview.

Great, it’s a pleasure to have you here. So why are you interested in working for us?

Sounds like you’d be a great fit! Now, our company looks for ap-plicants with a broad range of applicable skills, including (a) unjam-ming the shredder, (b) tuning out your cubicle-mate, a borderline hyperactive grad named Chip, and (c) enthusiastically accepting your bonus check which leaves you at a net positive of $23 after rent for your micro-apartment in this city.

Super! On that note, let’s get started with the case. Your client is a major yogurt manufacturer that suffers from an inferior product, food poisoning allegations, and a CEO who recently spent 60% of revenue on Beyoncé tickets. Could you please tell me what 17.9% of 13,485 is?

Insightful indeed! Well, we will certainly be in touch soon. By this I mean that you should repeatedly refresh your email for the next 4-6 weeks until you receive an automated rejection detailing the “large volume of qualified applicants” when really the job went to the guy in your Econ class who booked me box seats at the Super Bowl.

To be honest, I’m not, but the people at Dropbox didn’t think my double major in Punjabi Poetry and

Ceramics reflected “relevant skills,” whatever that means.

Frankly, anything would help me out with the debt I incurred

from purchasing Case in Point.

Sure, but first I’d like to distract you by asking irrelevant questions about gas prices, mortgage rates,

and the current strength of the yen. Next, I’ll present an overly complex

framework that makes me seem like a budding consultant but is really a

regurgitation of Victor Cheng’s “Busi-ness Analysis” approach that I il legally

downloaded from YouTube.

by Caroline Vexler

a

A Thread of Life:

Doctors in Danger Zones

"e Intercollegiate Finance Journal December 2013 Careers & Internships 19

by Tung Nguyen

It is 2008, and you’re a surgeon. The

mission in Somalia you’ve been work-

ing for, Médecins Sans Frontières (MSF),

has provided innumerable treatments to

Somalis in need. As the monotonous en-

gine of a car on a beaten road hums, your

thoughts wander, perhaps to your family,

your kids and wife in a different and safer

country. You are traveling down the beat-

en road, and only a split-second later—a

boom. An explosion engulfs the vehicle

in heat, and it is all over.

Such stories, those of killing, assaults

or kidnappings, are common fears of

¼|b´b� �bY�O8�� 8�Y� È�±�b±´� ��� O��q�O¼�zones. But of course, doctors sign up,

fully knowing the dangers. After all,

MSF, or more commonly known to En-

glish-speakers as Doctors Without Bor-

ders, is a Swiss-based international med-

ical aid provider for perverse regions in

the world where access to healthcare is

very limited.

Disasters and Circumstances in Need Super Typhoon Haiyan, named local-

ly “Yolanda,” devastated the Philippines

with wind speeds equivalent to that

of a Category 5 hurricane as it passed

through the Southeast Asian archipel-

ago on November 8. The largest city af-

fected, with more than 200,000 people,

Tacloban on the peninsula of Leyte was

annihilated in the typhoon’s destructive

surge. While the Philippines are accus-

tomed to an average of 20 typhoons per

year, most strike north on the big island

of Luzon, but Leyte’s exposed geography

and ill preparation allowed the tsuna-

mi-like conditions to make a thunderous

amphibious landing.

“It was as if a giant hand had come

down from the sky and just crushed,” de-

scribed a CNN correspondent, still awed

at the sight of the aftermath. Corpses

Èb±b� �Á��bY� n±��� q�¼���8� �n� ȱbO�8tb´V�makeshift houses characteristic of the

surrounding villages now reduced to

heaps. The bodies salvaged by the local

population and aid workers were left

on the side of the road, accumulating in

piles of men, women and many children,

readied for mass burial.

Among the many medical teams, in-

cluding those, according to CNN, sent

from nearby Asian countries and those

from international organizations such

as AmeriCares, International Medical

Corps and Direct Relief, MSF has a team

in place. An NBC report explains the

lack of potable water, shelter and food,

demands overwhelming local hospitals,

pharmacies, and other assets, as well as

the rise of pneumonia, diarrhea and the

concerns of tetanus and dysentery caus-

ing a “public health nightmare.” This

makes the contribution of medical teams

and supplies crucial

What’s Your Motivation?Some pre-meds in college have yet

to answer the question of “Why do you

want to be a doctor?” Young pre-meds

like me once would have said, “I want to

help people,” forgoing the fact that many

other professions, such as teaching, also

aim to help people in some way or anoth-

er. Sometimes it seems to be about the

money—however, keeping in mind that

an investment banker can earn more af-

ter a fraction of the schooling makes this

motivation less powerful. And for others,

the answer may lie in wanting to aid the

advancement of health technologies, for

example, becoming a part of the team

that one day allows a rapidly fading pa-

tient with a failing liver to receive an in

vitro 3D-printed replacement.

So still, the idealism of helping peo-

��b�|8�Y´~��� �´� 8� ´b�´b��n� ´8O±�oOb� 8�Y�accomplishment that is not as easily re-

alizable through other professions as it

is through medicine. One very hands-on

approach is as a medical aid relief per-

sonnel. There are many medical relief

agencies that take in medical doctors,

nurses, and logistics support staff.

Here, we highlight MSF:

reQuIreMenTS to join msf your compensationQuoted from their website, the MSF requires from doctors

these following:

At least 2 years of relevant professional experience. Medical

residency counts for this.

Availability for a minimum of 9-12 months, shorter for sur-

geons, anesthesiologists, nurse anesthetists, and ob-gyns

for short assignments of 1-3 months due to rigor of those

specialties.

Relevant travel or work experience outside of the United

States to demonstrate effectiveness in working in foreign

environments.

Experience as a supervisor, manager, teacher, and/or train-

er, to oversee others and teach them how to administer ba-

sic treatment.

Ability to work with diverse group of professionals of all

nationalities, able to forgo language and cultural barriers.

Flexibility and adaptability to dynamic situations that hap-

�b�����¼|b�ob�Y¡Computer skills for data collection.

Commitment to MSF’s principles of organizational inde-

pendence and neutrality and also commitment to impartial

care of patients.

Furthermore, MSF recommends language skills predom-

inantly in French due to MSF’s missions in French-speaking

countries in Western Africa, while Portuguese, Russian and Ara-

F�OiÈ|�O|��´�´�bO�oO8��Ê�±b�bÇ8�¼�¼��¼|b���¼b±�8¼���8��´��¼��t|¼�with MSF missions in Syria—are also useful.

�b±b�8±b�´��b��n�¼|b�|�t|��t|¼bY�Fb�bo¼´�8´�¦Á�¼bY�n±���¼|b�±�website:

Starting gross monthly salary of $1498

Per diem during assignment in local currency

Round-trip transportation

Room and board in project country

Comprehensive medical, disability and life insurance cov-

erage

Emergency evacuation insurance

In 1999, the Nobel Peace Prize went to the MSF, as the NY

Times says of MSF staff members “[having] a reputation as

8���t�¼|b�F±8Çb´¼����¼|b�ob�YV��n¼b��¼|b�o±´¼���b´����È|b��Y�-saster strikes and the last to leave.” Whereas the life of a doc-

¼�±����8�Y��b´¼�O�|�´��¼8���´�nÁ�o����t�����±8O¼�ObV�Y�´8´¼b±�±b��bn��bY�O8��8�Y�¼8�b´����8�´�t��oO8�¼�±�´��8�Y�O|8��b�tb�±��b�¼|8¼�begs the question, “Would you be up for it?”

Where humanity has virtually lost all hope, a few extraordinary

medical volunteers risk it all.

Markets & Investing "e Intercollegiate Finance Journal December 201320 "e Intercollegiate Finance Journal December 2013 Markets & Investing 21

MarkeTS & InveSTIng 22 Bitcoin: Myth and Reality

23Interview with Akash Shah from Morgan Stanley’s Sales & Trading Division

24 E-Cigarettes: Smoke in Our Eyes or Shock to the Industry?

25 ,|b�Á���8±Ê����8O¼��n��bq8¼���25 The Obamacare Market

26Current Accounts, the Politics of Debt Ceilings, and America’s Eco-nomic Future

Visit theifj.com/markets--investing for these articles:

What Is An Index Fund?

Top 5 Recent & Upcoming Market Events

What Is Impact Investing?

Investing in Biotechnology Stocks

also In This Section

Early last month, Twitter took the leap from Silicon Valley to Wall Street in the largest U.S. technology initial

public offering (IPO) since Facebook. The social media messaging giant debuted strongly, opening at $45.10 –

up 73% from the $26 Initial Public Offering – and closed with the biggest day-one jump since 2007 for an IPO

of more than $1 billion. In light of strong market demand, with investors asking for 30 times the 70 million

shares offered in the IPO, the company raised about $1.8 billion and established a market capitalization of over

$20 billion.

Around 18 months ago, fellow tech titan Facebook also made the leap of faith, only to face a host of trading

glitches and a hefty selloff, from which shares failed to recover until a year later.

by Alon Galor

A stark undervaluation compared to the market consensus In pricing an IPO, underwriters engage in a delicate balancing

act between raising as much capital as possible for a company

8�Y��±�Ç�Y��t�´�t��oO8�¼�±bÈ8±Y�n�±���Çb´¼�±´¡��8�Ê�8�8�Ê´¼´�believe that Twitter purposefully underpriced their IPO. In

other words, it opted to forgo capital funds in exchange for a

margin of safety that would reward its investors and protect

itself from a Facebook-like debacle.

Favorable market environmentTwitter’s entrance into the public realm comes at a time of sol-

id market performance, with the S&P 500 and the Dow Jones

Industrial Average setting record highs. In particular, the S&P

was up in 16 of the 21 trading days prior to the IPO, gained

8% in the relevant two month period and is currently up 26%

year to date ( YTD). Furthermore, November has proven to be

a favorable time of year in terms of seasonal market gains. In

contrast to the market’s strong performance leading up to Twit-

ter’s IPO, in the six weeks before Facebook’s mid-May IPO (a

seasonably unfavorable period according to the old maxim “sell

in May and go away”), the S&P lost 7.5% as renewed concerns

over the European debt crisis plagued the markets.

A matter of maturityGrowth potential is attractive to investors. While Twitter went

public during a hyper-growth stage, Facebook entered the mar-

�b¼�8¼�8�´�t��oO8�¼�Ê���±b��8¼Á±b�´¼8tb��n��¼´���nb�OÊO�b¡�

Social media frenzy, “lock-up” regulations and the right exchangeSome additional factors that are speculated to have facilitated

Twitter’s successful IPO include the growing investor appetite

n�±�´�O�8���bY�8��( ´�8�Y���Çb´¼�±�O��oYb�Ob�´¼b����t�n±���the enforcement of stringent “lock-up” regulations - Twitter

instituted a 181-day mandatory lock-up period for executives,

directors and owners of substantial amounts of stock. Finally, in

comparison to Facebook’s NASDAQ debut, whose glitches cost

investors nearly $500 million, Twitter’s IPO was smooth sailing.

The New York Stock Exchange (NYSE) handled the stock’s list-

ing successfully, executing the offering in an orderly and timely

manner.

What does the future hold?Twitter has held up well since its IPO, remaining in the neigh-

borhood of $40-45 per share. But how accurate is the market’s

current valuation of Twitter after all? Although annual revenue

has more than doubled in the past year to upwards of $500 mil-

lion, many skeptics point to the fact that Twitter has yet to post

8��±�o¼�8�Y��8Ê���¼�Á�¼���ÀÎ�p¡��´��¼�Ç8��Y�¼���8�b�´ÁO|�´¼±��t�assumptions about future growth despite the lack of present

o�8�O�8��´¼±b�t¼|§� ��Ê�¼��b�È����¼b��¡

So, what was the root of these two polar outcomes? Why did Facebook's IPO tank while Twitter's soared?

“Twitter has held up well since its IPO, remaining in the neighborhood of $40-45 per share. But how accurate is the market’s current valuation of Twitter after all? Although annual revenue has more than doubled in the past year to upwards of $500 million, many skeptics point to

the fact that Twitter has yet to post a profit and may not until 2015.”

Twitter

facebookvs.

What is an #IPO?6 Nov

Details

Team IFJ @the_ifj

$Q� LQLWLDO� SXEOLF� RIIHULQJ� �,32�� LV� WKH� ¿UVW�HYHU� VDOH� RI�stock to the general public. An IPO is generally done through an underwriter who is typically an investment bank that works to publicize the offering, gauge investor interest and thereby determine the appropriate price for the stocks. A type of equity issuance, an IPO provides an important alternative to debt issuance by allowing companies to raise capital in support of their activities through the sale of the right to ownership in a company, rather than through the incurrence of debt. #TheIFJ

6 Nov

Details

Team IFJ @the_ifj

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"e Intercollegiate Finance Journal December 2013 Markets & Investing Markets & Investing "e Intercollegiate Finance Journal December 201322 23

MYTH & REALITYB

ITC

OIN

arlier this month, the Wall Street Jour-

nal reported that the price of Bitcoins

±�´b�´�t��oO8�¼�Ê�YÁb�¼���b���b®´�Fb��bn�¼|8¼�¼|b�currency could be used for traditional payment

methods sometime in the near future. The mo-

mentum is coming from around the world, as

amateur investors, venture capitalists and tech-

nology enthusiasts pump money into businesses

¼|8¼�8±b�¼±Ê��t�¼��otÁ±b��Á¼�|�È�¼��¼±8Yb�8�Y�Á´b�Bitcoin to buy goods and services.

A bit about Bitcoins Bitcoin is a four-year-old virtual currency that

enables two parties to transact over the Internet.

There are two ways to obtain and then utilize

�¼O���´U� o±´¼�ÊV� ��b� O8�� FÁÊ� 8�Y� ´b��� �¼O���´�at a virtual exchange like Tokyo-based Mt.Gox

where they’re sold at their market price against

the value of other currencies such as the Euro.

Secondly, one can download a special software

that’s similar to Paypal called a Bitcoin client that

allows for the transfer and stock of Bitcoins.

Bitcoin’s market price has historically been

highly volatile. For instance, on Wednesday, No-

vember 13th, its value in terms of USD was $425,

nearly double the amount it was at the start of the

month and up from roughly $13 at the beginning

of the year. The recent jump in Bitcoin prices is

also being attributed to surging demand from

China, where a local exchange is drawing trading

from around the world.

A little bit of everythingBitcoin has numerous advantages. Firstly, any-

one with an Internet connection can get involved

with Bitcoins. Moreover, within the Bitcoin net-

work, people can transact without divulging who

they are since transactions are carried out using

series of numerical digits as pseudonyms. Like-

wise, while Bitcoins can be traded on a number

of exchanges, they can be swapped amongst indi-

viduals and corporations privately. Furthermore,

Bitcoins have been recognized for having lower

transaction costs than credit or debit cards.

Nonetheless, Bitcoin has certain disadvantag-

es too. In particular, anonymity may encourage

people to use the virtual currency for malicious

purposes. Since the Bitcoin ecosystem is com-

pletely decentralized and not backed by a central

F8��V� �¼� �´� Çb±Ê� Y�noOÁ�¼� ¼�� ±bÇb±´b� ¼±8�´8O¼���´�and easy to carry out fraudulent activities. Thus,

Bitcoin’s unregulated status makes it ideal for

money laundering and the buying and selling of

illegal goods. Another major drawback of Bitcoin

usage is that capital gains incurred from using

Bitcoins cannot be monitored and hence, there

is no way to monitor tax payment on these cap-

ital gains.

Bitcoin’s merits—anonymity, decentraliza-

tion, lack of regulation—could be reasons for its

potential downfall. While the Bitcoin doesn’t of-

fer the stability or safety of a central bank-backed

currency, it can be compared to other units of

value that can be transferred between peers, such

8´�n±b¦Áb�¼~q�b±�����¼´¡�Ï�¼|�Át|��¼O���®´�n±�¼|Ê�ecosystem may be relatively small, its undeniable

value to criminals has put it high on the agenda

�n� ±btÁ�8¼�±´¡��±Át� Yb8�b±´V� ´bÉ� ¼±8noO�b±´V� 8�Y�thieves are constantly seeking methods of pay-

ment that allow them to pocket their illicit pro-

ceeds in peace. While Bitcoin hasn’t yet earned

that level of rhetoric, it has the same ability to

mask transactions.

Anyone who buys Bitcoin at $100 and uses it

to buy $110 worth of goods is technically sup-

posed to report that $10 in gains to the govern-

ment. It’s a safe bet that few, if any, Bitcoin users

do. Why bother, when both buyer and seller are

anonymous? Even Bitcoin’s creator, who oper-

ates under the pseudonym Satoshi Nakamoto,

remains unknown. With Bitcoin values produc-

ing wild gains and losses for its users, Bitcoin has

caught the attention of tax authorities, too.

Bitcoin prices also are being buoyed by a

crackdown on illegal activities that have been

tied to the virtual currency and increased reg-

ulatory scrutiny. Such measures help make Bit-

coin more legitimate. Federal agents last month

closed an online mart where customers allegedly

could use Bitcoin to buy anything from heroin

to forged passports, according to a criminal com-

plaint. And over the summer, the Securities and

Exchange Commission charged a Texas man with

raising more than $4.5 million worth of Bitcoin

from investors who were “falsely” promised a

weekly interest rate of 7%. Mystery still surrounds

Bitcoin. Its creator -– or creators -– has remained

8���Ê��Á´�8�Y�´�bO�oO�Yb¼8��´�´Á±±�Á�Y��t�¼|b�history of the virtual currency remain fuzzy. Yet,

the buzz is growing.

Biting the dust?The rise of this virtual currency has piqued the

��¼b±b´¼��n��8�Ê�O��´Á�b±´¡��´��¼�8�Fb�boO�8����-

novation that makes online transactions easier?

Or is there more to the issue than that? Should

Bitcoin be regulated? Is its volatility a threat to

the world economy? Is Bitcoin’s use in markets

for illicit goods a reason to doubt the currency

overall? How much should the Bitcoin currency

be expanded? Could it ever be a predominant

currency around the world?

by Shreya Bhargava

Interview with Akash Shah: Morgan Stanley Sales & Trading

Was there anything in particular that made you decide that Ê�Á�È8�¼bY� ¼��t�� ��¼��o�8�Ob§�Ï�Y�È|Ê�Y�Y�Ê�Á�O|��´b�sales and trading?

I gue´´�Ê�Á�O�Á�Y�´8Ê��®��b�¼±b�±b�bÁ±�8�U���´¼8±¼bY�8����~�±�o¼�organization in high school and also had a business during my

time at Brown, so sort of that combination and those aspects of

o�8�Ob�8�Y��8�8t��t�|8Çb�8�È8Ê´�Fbb�� ����b¡�,|8¼�È8´���b�of the reasons why I wanted to go into the business realm, and

then I think I got the information on sales and trading because I

have my own portfolio and I was trading stocks and I was talking

with other people. So

that combination of

having my own port-

folio whether it was a

real one or a practice

one combined with

me being entrepre-

�bÁ±�8�V��8Yb��b�È8�¼�¼��n�OÁ´����FÁ´��b´´�8�Y�o�8�Ob¡

How would sales and trading differ from investment banking?

The biggest difference is going to be the hours. Sales and trad-

ing, you work 11 and 12 hours but it is literally constant work;

when the markets are open it’s literally non stop. Sometimes

you barely have time to get up and get a glass of water. It’s re-

ally busy. And I’m the type of person that likes to stay busy and

when I’m not, I just get frustrated because I feel like I should be

doing something. I think that investment banking is a little slow

at times and then picks up and it’s irregular, but I’m the kind of

person who likes to stay busy all the time so that’s why I chose

sales and trading. Also, I like seeing how sales and trading is

affected by legislation or the government shutdown right now,

whereas I don’t think investment banking sees as much of that.

What best prepared you for working at Morgan Stanley?

I think t|b�F�ttb´¼�¼±8�¼�¼|8¼�Ybo��¼b�Ê�Fb´¼��±b�8±bY��b�È8´��Á´¼�the ability to multitask, and I can’t stress that enough. Because

I’m so active during the day, I get multiple client requests at

the same time and you have to be able to prioritize and manage

your work. I think I learned that from Brown just because a

lot of the work is challenging; even if you only have 3 or 4 or

5 classes it is very intensive and it is a lot of work and if you

can put the time in and develop study habits, then I think that

will best prepare you. In terms of material, I think a lot of the

courses at Brown prepared me for basics of what I needed to

know whether if it was for interviews or just for generally how

the markets work. So yeah, I would say multitasking is the most

important skill.

From your perspective at Morgan Stanley, how challeng-ing would changing divisions or career paths be for people È|��8±b��Á´¼�´¼8±¼��t�¼|b�±�o±´¼���F§I don’t think it’s too hard. I mean, Morgan Stanley always en-

courages mobility. If you’re not happy with your job, then I

think people are

okay with you mov-

��t� 8±�Á�Y� ¼|b� o±��¼±Ê��t� ¼�� o�Y� È|b±b�Ê�Á� o¼¡� Ï�Y� �� ¼|����È�¼|� o�8�Ob� ¼|b±b®´�something and some

job for every person

that wants the opportunity. I think it’s our job as people in the

o±��¼��¼±Ê�8�Y�o�Y��Á±���8Ob����¼|b�o±��8�Y�¼���8�b�´Á±b��¼|b±�people feel happy and comfortable. Obviously, it’s hard and dif-

oOÁ�¼�¼��O|8�tb���F´�FbO8Á´b�Ê�Á�|8Çb�b´¼8F��´|bY�O���bO¼���´V�but I think if you want to you have the ability to.

What are your plans for the future? Do you plan on staying at Morgan Stanley?

What I want to do right now is just learn as much as possible.

For me now, I’m learning so much and I get that mixture of Lat-

in America, which I think is unique because most people don’t

get that exposure. So for me right now, I think I’m getting exact-

ly what I wanted to get out of working here. Who knows what

the future holds but right now I’m happy where I am.

by Kyle Law

Akash Shah went to Brown and concentrated in Economics with a Political Science focus. He studied abroad junior year at

Oxford and interned at Morgan Stanley, where he got a full-time position and has been working for over two years.

“The combination of having my own portfolio whether it was a real one or a practice one combined with me being entrepre-

neurial, made me want to focus on business and finance.”

e

Markets & Investing "e Intercollegiate Finance Journal December 2013 "e Intercollegiate Finance Journal December 2013 Markets & Investing24 25

E-Cigarettes: Smoke in our Eyes or Shock to the Industry?

lectronic cigarettes, or e-cigarettes, are battery powered devices which

deliver nicotine to the user in the form of a vapor. They gained popularity

in China in 2004, and were introduced to the United States a few years later. Their

popularity has soared, with some predicting that e-cigarette sales will overtake sales

of traditional cigarettes by 2021. E-cigarettes are currently not subject to regulation

FÊ�¼|b���ÏV�È|�O|��b8�´�¼|8¼�¼|bÊ�8±b���¼�|b8Ç��Ê�¼8ÉbYV�O8��|8Çb�q8Ç�±��tV�8�Y�O8��be sold online.

by Carolyn Stichnoth

Consumer Appeal Their popularity can be at-

tributed to their wide appeal.

They appeal to new smokers,

mostly teenagers and young

8YÁ�¼´V�È|���±bnb±�¼|b�q8Ç�±´�offered in e-cigarettes since

q8Ç�±��t� �´� F8��bY� n±��� ¼±8-ditional cigarettes. Current

smokers view e-cigarettes as

a healthier alternative, and

smokers who are trying to

quit use e-cigarettes as their

o±´¼� ´¼b�¡� ,|b� �±b´b�Ob� �n�this last group may raise some

doubts about the sustainabil-

ity of the growing e-cigarette

market because much of the

tobacco industry’s success is

due to their consumers’ ad-

diction, which guarantees a

consistent source of sales. But

if people are using e-cigarettes

to quit, there will not be such

an assured market. As it turns

out, however, although many

people turn to e-cigarettes as

a means to quit, only a small

portion of those actually end

up quitting; most continue to

use e-cigarettes.

Impact on Big TobaccoDoes the rise of e-cigarettes

mark the downfall of Big To-

bacco? Of course not; the “big

three” tobacco corporations

(Reynolds American, Loril-

lard, and Altria) have noticed

the trend and are taking ac-

tion. Reynolds American and

Altria have each launched

their own lines of e-cigarettes,

while Lorillard has bought

two e-cigarette manufactur-

ers, including national mar-

ket leader Blu. For the time

being, however, e-cigarettes

represent only 1% of the $100

billion tobacco market in the

U.S. Thus, the superiority of

¼|b� F�ttb´¼� ¼�F8OO�� o±�´� �´�unlikely to be challenged in

the near future.

FDA Regulation LoomsAll eyes have been on the

FDA, which was expected to

make a decision regarding

the regulation of e-cigarettes

a few weeks ago. Whatever

regulation is put in place,

there will be positive and

negative consequences for

e-cigarette manufacturers. On

the one hand, regulation will

mean consistency and safe-

ty in terms of the purity and

amount of nicotine delivered,

which would mitigate some

concerns. On the other hand,

regulation would draw atten-

tion to the hazards of e-ciga-

rettes; they would not be seen

as such a healthy alternative.

Regulation could also take

away a lot of the unique bene-

o¼´�¼|8¼�b~O�t8±b¼¼b´�|8Çb��Çb±�traditional cigarettes, such

8´� ¼|b� Á´b� �n� q8Ç�±��t¡� ,|bÊ�È�Á�Y� Fb� ´ÁF�bO¼� ¼�� ´�t��o-

cant federal and state taxes,

and internet sales would be

discontinued.

The e-cigarette industry is an intriguing one, and one that

could see strong growth in the next few years. Despite this po-

tential, however, the industry is still very much at an embryonic

stage and it remains to be seen whether the e-cigarette can grow

enough to challenge the historical and contemporary hegemony

of the tobacco cigarette.

The Culinary impaCT of

DeflaTionby Sarah Park

fter experiencing a period of tremendous economic

growth in the late 1980s that culminated in a dramatic

stock market crash, Japan is still struggling to over-

O��b�¼|b�8YÇb±´b�bO�����O�bnnbO¼´��n�¼|b�O±8´|V���O�ÁY��t�Ybq8-tion, high unemployment, stagnant growth and a growing debt

to GDP ratio. The 2007-08 Global Financial Crisis and the 2011

Great East Japan Earthquake and Tsunami both greatly exacer-

bated these issues, and in the past six years alone the country

has fallen into a recession three times.

Although several recent events, including Japan’s successful

bid to host the 2020 Summer Olympics and the implementation

of “Abenomics” (an aggressive set of economic policies intro-

duced by Prime Minister Shinzo Abe last year) have indicated

Japan’s economy may be on the road to recovery, the effects

�n��8�8�®´��±�¼±8O¼bY��b±��Y��n�bO�����O�´¼8tq8¼����Èb±b��±�-

found and widespread and continue to be felt in society. One

sector that evidently has been affected by the country’s eco-

nomic downturn recently garnered worldwide attention: the

food industry.

Origins of the Scandal A nationwide food scandal has recently erupted in Japan, result-

ing in intense public outrage and calls for heightened scrutiny

and investigation into the authenticity of menus and food la-

beling. The “deceitful labeling” scandal, as the media named it,

began in October with the Hankyu-Hanshin Hotels’ admission

that from April 2010 to July 2013, the chain of 17 hotels and

111 restaurants had mislabeled 47 different food items, affect-

ing over 78,000 customers. In addition to engendering public

anger and protest, the revelation also led to the resignation of

the President of Hankyu-Hanshin Hotels and has sparked doz-

ens of major hotels, restaurants, and department stores to come

forward with confessions over the past few weeks about their

own food mislabeling practices. Examples of these “deceptions”

range from the substitution of cheaper Whiteleg shrimp for sim-

ilar but 50% more expensive Shiba shrimp to the use of Korean

chestnuts to garnish a dessert rather than French ones.

Why the Japanese Care Although this food scandal hasn’t caused any illness or detri-

mental health effects, the revelations have ignited intense con-

troversy because of the country’s longstanding emphasis on

and adherence to “omotenashi” - the word used to describe Ja-

pan’s pride in its culinary culture and commitment to excellent

hospitality and service. Taking into account this fundamental

8´�bO¼��n��8�8�b´b�OÁ�¼Á±bV���b��8Ê�È��Yb±�È|Ê�´���8�Ê�o±�´�were willing to mislabel or misrepresent their menu items. The

answer? Japan’s economy.

The Culprit Behind the Scandal ��t|�8�Y��b±´�´¼b�¼�Ybq8¼��������8�8��|8´���Y�´�Á¼8F�Ê�8tt±8-vated the effects of its various recessions and contributed to the

country’s poor economic growth. For hotels, restaurants, and

Yb�8±¼�b�¼�´¼�±b´V�8�Èb8��bO����Ê�¼±8�´�8¼b´�¼����Èb±��±�o¼´V�forcing many to seek ways to cut costs. Because the substitu-

tions and misrepresentations were often almost impossible for

8���±�8�� OÁ´¼��b±� ¼��Y�´Ob±���±�Y�´O�Çb±V�o±�´�Èb±b�8F�b� ¼��±b8��Íb�´�t��oO8�¼�´8Ç��t´�FÊ�O|8±t��t�8��±b��Á��n�±�È|8¼�8�-

peared to be higher quality food. Apparently this practice has

been going on for over 20 years thus coinciding with the Japa-

nese stock market’s sharp plunge that launched the nation into

a recession in 1990. It will certainly be interesting to see how

and when the food industry will recover from this scandal and

regain the trust of consumers but in the meantime, be aware

that food mislabeling is by no means limited to Japan. Because

¼|b�-��¼bY�+¼8¼b´��´�8�´��´¼����±bO�Çb±��t�n±���¼|b�ÀÎÎg�o�8�O�8��crisis, be conscious of the fact that what you read on the menu

is not always what you get.

The Obamacare Market

by Thomas Pesce

The Affordable Care Act (ACA), commonly referred to as “Obamacare,” has been at the center of Washington discussion for months. While its goal of providing more Americans access to healthcare is certainly meritable, the implementation of the signup process has proven far from praiseworthy.

low enrollment rates:The White House Administration reports that in Octo-EHU� ������ 2EDPDFDUHōV� ƓUVW� PRQWK� LQ� DFWLRQ�� D� WRWDO�of 106,185 people enrolled in ACA health care plans through government exchanges. The administration had predicted and hoped for many more.

However, it may be preemptive to write off Obamacare. In 2007, Massachusetts’ universal health-care plan also suffered severely low enrollment. Al-though only 123 people in the state signed up in the SODQōV�ƓUVW�PRQWK��ŏ5RPQH\FDUHŐ�HQUROOPHQW�LQFUHDVHG�exponentially and the plan is now considered a success.

Previously insured dropped:Low enrollment rates are not Obamacare’s only prob-lem. Contrary to President Obama’s promise that “if you like your plan, you can keep it,” an estimated 4.02 million Americans’ policies have been cancelled. In re-sponse, the President declared that insurers can contin-ue providing for another year plans that did not comply with the Act. The problem remains that plans have al-ready been cancelled and insurers are not obliged to reestablish them.

While it is certainly premature to call Obamacare a failure, it has clearly had a rocky start. Expect reporters, politicians and economists to continue monitoring en-rollment numbers over the next few months.

ea

Markets & Investing "e Intercollegiate Finance Journal December 2013 "e Intercollegiate Finance Journal December 2013 Markets & Investing26 27

Current Accounts, the Politics of Debt Ceilings,and America’s Economic Future

They say the road to hell is paved with good intentions. Although many on the left and right in the United States

harbor genuine concerns about the federal government’s

indebtedness, the debt ceiling crisis nonetheless nearly

forced the U.S. Treasury to default. Some studies sug-

gest an association between high levels of central gov-

ernment debt and slower GDP growth. At the same time,

austerity policies to reduce debt adversely affect demand

and impede growth. Still, while the nation bickers over

the debt, brinksmanship is chipping away at something

�ÁO|���±b�´�t��oO8�¼U�Ï�b±�O8®´���´�¼����8¼�¼|b�Ob�¼b±�of the international monetary order. Over the past de-

cades, the U.S. has consistently imported more than it

has exported. This imbalance is nothing new. Howev-

b±V�-¡+¡�YboO�¼´�8±b���¼8F�b�n�±�¼|b�±�´�ÍbV�È|�O|��b8�bY�at 6.5% of GDP in 2005, and their frequency. Standard

¼|b�±�b´� �n� ��¼b±�8¼���8�� ¼±8Yb� ´Áttb´¼� ¼|8¼� YboO�¼´�

by Christopher Dederick

´|�Á�Y�8Y�Á´¼��8¼Á±8��ÊU� ��´ÁnoO�b�¼�Yb�8�Y� n�±�-¡+¡�bÉ-ports, denominated in dollars, should depreciate the U.S.

dollar, making exports cheaper and more desirable, thus

��O±b8´��t�Yb�8�Y�8�Y�F8�8�O��t�¼|b�YboO�¼¡

Currency and CapitalThe United States’ unique role as the world’s currency

leader distorts this adjustment process because there is

always underlying demand for the dollar. The U.S. dollar

serves as the reserve currency for the international mon-

etary system and is used in the majority of all economic

¼±8�´8O¼���´¡�,|b�-��¼bY�+¼8¼b´�o�Y´��¼´b�n����¼|�´��ÁO�Ê���-

sition for various reasons, including the size of its econo-

my, the depth and liquidity of its capital markets, and most

´�t��oO8�¼�ÊV�¼|b��b±Ob�ÇbY�´bOÁ±�¼Ê��n�Y���8±~Yb�����8¼bY�assets, particularly U.S. treasuries. Private actors, institu-

tional investors, and central banks looking for security and

dollar liquidity invest in dollar-denominated U.S. treasur-

ies. When the global economic crisis was at its worst, the

-¡+¡�b���ÊbY�|Átb���q�È´��n�O8��¼8��´bb���t�´8nb�±b¼Á±�´¡�This process even led to negative real interest rates; for

a brief moment, investors were actually paying the U.S.

Treasury to safely hold their capital.

International RelationsThe self-imposed near-default of the U.S. government was

particularly troubling for China and other major export-

ers, which reinvest their immense surpluses in the Unit-

ed States. The prospect of a U.S. default threatened their

massive holdings of U.S. treasuries. This has led some to

question the security of U.S. treasuries, and consequently,

the wisdom of U.S. currency leadership. In the wake of the

debt-ceiling crisis, China’s leading state-run editorial en-

couraged the world to “de-Americanize” the international

monetary system.

An “Exorbitant Privilege”The U.S. trade balance has improved in recent years, down

to 2.4%. Nonetheless, currency leadership continues to al-

low the U.S. to live beyond its means. Rather than have its

OÁ±±b�¼�8OO�Á�¼��8¼Á±8��Ê�F8�8�ObV�Á��¦Áb�Ê�|�t|���qÁÉb´��n� n�±b�t��O8��¼8��o�8�Ob�¼|b�t8��Fb¼Èbb��È|8¼�¼|b�-¡+¡�imports and what it exports. These investments accord the

U.S. a higher standard of living than it can fund with its

exports. Strong demand for treasuries reduces the rate of

return the U.S. Treasury needs to offer, resulting in unusu-

ally low government borrowing costs. This has led some

to call U.S. currency leadership an “exorbitant privilege”.

The loss of the dollar’s reserve status, followed by a cur-

rent account reversal, could put an end to this privilege.

The dollar would likely depreciate, making imports more

expensive, and reducing standards of living. With a small-

er pool of available capital, real interest rates would rise,

impeding investment. The resulting spike in government

borrowing costs would, ironically, further balloon the

debt. A study by Sebastian Edwards suggested that current

account reversals can reduce GDP growth by 3.5% to 5%.

ConclusionsFor now, alarmism seems premature. With Japan’s stag-

nant economy, the ongoing Eurozone crisis, and China’s

����Fb±8��o�8�O�8��´Ê´¼b�V��b�¼|b±�¼|b�Êb�V�bÁ±�V���±�ÊÁ8��could supersede the dollar. That being said, growing con-

cerns over the U.S. government’s stewardship of its econo-

my could prompt the world to move towards a multipolar

monetary system, with a basket of currencies replacing the

dollar. The unnecessary loss of U.S. currency leadership

O�Á�Y�±b�±b´b�¼���b��n�¼|b�t±b8¼b´¼�´b�n~��q�O¼bY�bO�����O�calamities of our time. The United States must ensure con-

¼��ÁbY�O��oYb�Ob����¼|b�Y���8±��±�±�´���b¼¼��t�t��Y���¼b�-

¼���´�´b¼�¼|b�o±´¼�´¼��b¡�

"e Intercollegiate Finance Journal December 2013 Business & Startups Business & Startups "e Intercollegiate Finance Journal December 201328 29

BuSIneSS & STarTuPS 28 Social Entrepreneurship in the 21st

Century

30 Start Me Up: Six Startups to Watch

31 The Digital Future of Marketing

32From Wayland to Wall Street: An Introduction to Business from a Pre-Med

33 Carnitas & Coldplay: The Chipotle Business Model

Visit theifj.com/business--startups for these articles:

��O±�o�8�ObU�3±b´¼���t�(±�o¼´��±���,|b�(��±Millenial Mentality

Valve Corporation: A Fable of Flatness

also In This Section

S cial Entrepreneurship in the 21st Centuryby Amber Teng

Types of social entrepreneurshipIn accordance with legal structures, there are three main types

�n�´�O�8��b�¼±b�±b�bÁ±´|��´U�����±�o¼´V�n�±~�±�o¼´�8�Y�|ÊF±�Y´¡����~�±�o¼��±t8��Í8¼���´�Á´b� ¼|b�±� ±bÇb�Áb� ¼�� 8O|�bÇb� ¼|b��±-ganization’s goals rather than to provide payment

or salary to the company’s employees. Despite

the misleading name of this kind of business,

���~�±�o¼��±t8��Í8¼���´V��±��( ´�n�±�́ |�±¼V�are allowed to attain surplus to sustain

the company and further its expansion.

��±~�±�o¼��±t8��Í8¼���´V����¼|b��¼|-

er hand, give their shareholders part

of the money that they make. Though

�8�Ê� �b���b� 8±tÁb� ¼|8¼� n�±~�±�o¼� ´�-

cial enterprises defeat the purpose of

social entrepreneurship, the difference

Fb¼Èbb�� n�±~�±�o¼� 8�Y� ����±�o¼� �±t8��-zations is not so clear. According to a num-

ber of social entrepreneurs, the type of busi-

ness organization one can have, whether it be

n�±~�±�o¼��±�����±�o¼V�Yb�b�Y´��8���Ê�����bt8��constraints and funding origins. The legal term

under which their organization falls does not

O|8�tb�¼|b�±���´´�����±�Ybo�b�¼|b�±�t�8�´¡��ÊF±�Y��±t8��Í8¼���´�8±b�8���É��n�F�¼|�n�±~�±�o¼�

8�Y����~�±�o¼��±t8��Í8¼���´¡�,|bÊ��8Ê�´Á���b�b�¼�each other, yet sometimes these two business mod-

els are bound by long-term contracts which they ful-

o������8�t�Çb��8��Á�¼��n�¼��b¡��ÊF±�Y���Yb�´�|8Çb�8�´�O�8����´´����Êb¼�±b�Ê����±bÇb�Áb�¼��nÁ�o���´ÁO|���´-sions. The hybrid ideal is, according to the Stanford

Social Innovation Review, to be able to have a social

impact on the world while also creating commercial revenue.

What is social entrepreneurship?,|b�Ybo��¼�����n�´�O�8��b�¼±b�±b�bÁ±´|����´�|�t|�Ê�Ç8±�8F�b�8�Y�O��¼bɼÁ8�¡�+��b�´�O����t�´¼´�8t±bb�¼|8¼�´�O�8��b�¼±b�±b�bÁ±´|����´�n�Á�Y����8�Ê����~�±�o¼��±t8��Í8¼����FÁ��¼����8���´´����¼��solve societal and economic problems. Others say that a social enterprise is a kind of business

�8Yb�n�±�´�O�8��t��Y´V��±�8�Ê����Y��n�����Ç8¼�Çb��±�o¼���Yb��¼|8¼�8���È´�¼|b�FÁ´��b´´�¼��´Á´¼8���itself, while bringing sustainable change and moving society to a stable and more just equilib-

rium. Still others, like Muhammad Yunus, a well-known social entrepreneur, claim that a social

b�¼b±�±�´b��8Ê���¼��bbY�¼��|8Çb�8��b�Y��±�YÁO¼�¼|8¼��´�´�O�8��Ê�Fb�boO�8��j�8´����t�8´�¼|b�±�Á¼b�the entrepreneur takes to get there contributes to economic inclusion and opportunity at the

F8´b��n�¼|b��ʱ8��Y¡�ÏOO�±Y��t�¼��Ï´|��8V���b��n�¼|b�����bb±����~�±�o¼��±t8��Í8¼���´�´Á���±¼-��t�´�O�8��b�¼±b�±b�bÁ±´|��V�¼|b�ob�Y��´���b�È|b±b���Y�Ç�YÁ8�´�È|��|8Çb���¼�Ç8¼����8�Y�Y±�Çb�seek to solve some of the most pressing societal problems using innovative solutions.

“Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.”

- Bill Drayton, CEO & founder of Ashoka

Why social entrepreneurship? Social enterprises have a sustainable im-

pact and delivery. Their impact should last

— they lobby for permanent change that will

remain even if the said organization were to

disappear. The processes by which they deliver

results should be maintained. Even if they have to

keep applying and reapplying the solution, social

enterprises deliver in such a way such that they pay

for themselves without necessarily looking for fund-

ing over and over again.

Social entrepreneurs seek to move large systems,

and social enterprise is based on the belief that it isn’t

possible to achieve such movement within the con-

straints of the system itself. The system either needs to

be broken down or turned on its head.

Social entrepreneurship is a viable career path for

many students in that it allows them to start their own

business and thus attain real-world experience while con-

tributing to the betterment of society. It is a middle ground that

8���È´�n�±�´�O�8��t��Y�8�Y�bO�����O�Fb�bo¼¡

“Social entrepreneurs seek to move large systems, and social enterprise is based

on the belief that it isn’t possible to achieve such movement within the constraints of the

system itself.”

"e Intercollegiate Finance Journal December 2013 Business & Startups Business & Startups "e Intercollegiate Finance Journal December 201330 31

Start Me Up: Six Startups to Watchby Michael Golz

The digital future of Marketing

Biotech Innovators

Oncosec, a biotechnology startup found-

ed by Punit and Avtar Dhillon, has devel-

oped a more effective method for treat-

ing melanoma. Their electroporation

treatment allows a DNA plasmid drug,

which is toxic to humans at the levels

necessary to get it into cells through nor-

mal cell transport, to enter target cells

more easily. This means melanoma can

be treated with lower concentrations of

the drug. What is really promising about

the company is that they market their

ImmunoPulse technology as a true con-

sumer product, promising less cancer

treatment side-effects due to the lower

concentration of drugs. This impressive

technology combined with sharp market-

ing makes it hard to ignore the potential

of Oncosec.

Financial literacy for Families

�8�7��� �´� 8� o�8�O�8�� ��¼b±8OÊ� ´�¼b�aimed at families with growing chil-

dren. The purpose of the site is to

provide a user-friendly interface so

that families can set up a “virtual

family bank,” based on chores, al-

lowances, borrowed money from

family members and other variables.

�8�7��� O±b8¼b´� 8�� b8´Ê~¼�~n����È���8�� n�±� o�8�O�8�� 8�Y� ±b´���´�F���-ty management for children not yet

aware of the connection between the

completion of work responsibilities

8�Y�¼|b��8��¼b�8�Ob��n�|b8�¼|Ê�o�8�-

cial habits. Any steps forward in pro-

��¼��t� o�8�O�8�� ��¼b±8OÊ� 8¼� 8� Ê�Á�t�age are a plus in my book.

Offshore Opportunities

Started in Silicon Valley in 2011, Blue-

´bbY®´�t�8���´�¼��´Á±��Á�¼�¼|b�Y�noOÁ�¼�b´�caused by the U.S. Work Visa system that

serve as a barrier to foreign entrepre-

neurs operating and attempting to devel-

op their ideas and projects in America.

The company aims to establish an off-

shore ship community located in inter-

national waters that will allow foreigners

to collaborate with American minds and

gain access to new resources without the

headache of getting approved to work

in-country.

3d Printing & Biomedicine of the

FutureFounded by Keith Murphy and Eric David

in 2007, Organovo is a vanguard of a rev-

olutionary new idea: 3D tissue printing.

The company has designed the technol-

ogy and procedures for growing cells in

a matrix such that cultures can be grown

in 3D, creating full tissue samples. This is

a major breakthrough for pharmaceutical

companies, which have struggled with

the process of pre-clinical drug testing

for lack of realistic human tissues with

which to perform tests. Even without

the capability of printed tissue systems

(and perhaps organs in the future), the

concept of reducing the development to

market time is one to get excited about.

eharmony for not-for-Profits

For anyone interested in pursuing a ca-

±bb±� ��Ç��Ç��t� ����±�o¼� �±t8��Í8¼���´V�CatchaFire bridges the gap between

¼8�b�¼bY� �±�nb´´���8�´� 8�Y� ����±�o¼´�in need of talent. Through an interview

and resume review process, the company

matches applicant organizations with po-

tential professionals interested in work-

ing for the cause. Fast Company maga-

zine equates CatchaFire to “an eHarmony

n�±���¼~n�±~�±�o¼´¡¬

Fresh Water, less energy

Started by Yale environmental engineer-

ing graduate Robert McGinnis in 2009,

Oasys has developed a method of de-

salinating ocean water that reduces the

energy impact of the process. McGinnis’

innovative method involves drawing wa-

ter out of saltwater into an even saltier

“draw” solution through osmosis. This

consists of solutes that allow for vaporiza-

tion at lower temperatures than the 212

degrees Fahrenheit required for normal

salt water, meaning less energy can be

Á´bY�¼���±�YÁOb��Á±�obY�È8¼b±�FÊ�´¼b8��distillation. This is a fascinating compa-

ny that uses clever engineering to solve

the worldwide issue of rising freshwater

demand. According to Oasys, global de-

mand for freshwater will exceed supply

by 40 percent in 25 years.

|b¼|b±��±���¼�Ê�Á�8±b�´�bO�oO8��Ê� ��¼b±b´¼bY����b�¼±b�±b�bÁ±�8��´¼8±¼~Á�´��±�Çb�¼Á±b� ��Çb´¼��tV�´��b��n�¼|b�FÁ´��b´´b´�8��b8±��t����¼|b�´Ob�b�8±b���O±bY�F�Ê�O�bÇb±¡�3|8¼�n����È´��´�8���´¼��n�Á�~8�Y~O����t�´¼8±¼Á�´V�8�Y�È|8¼�¼|b´b�o±�´�8±b�Y���t�¼��o����bÈ���O|b´����¼|b�±��8±�b¼´¡

by Alexandra Garcia

1. 2. 3. 4. 5. 6.

The rise of globalization and access to technology has pshed

more and more businesses to digital media marketing. The

emergence of social media platforms has driven marketing to

be more customer-centric, allowing consumers to interact with

a business despite the limitations of distance, experience, or

other factors. This new age of marketing facilitates the ability for

businesses to gain loyalty from their customers by being instan-

taneously available across various screens— computer, phone,

and television. The shift from conventional to personalized

marketing establishes a deeper connection between business-

es and their consumers. Furthermore, companies will be able

to gain business exposure and a greater return on investment,

while developing a community of devoted customers.

w

Business & Startups "e Intercollegiate Finance Journal December 2013 "e Intercollegiate Finance Journal December 2013 Business & Startups32 33

an inTroDuCTion To Business from a pre-meDby Jonathan Vu

The Big Three vs. the Bulge BracketI came to Brown as a pre-med, and as a

member of the Program in Liberal Med-

ical Education (PLME) concentrating in

Public Policy and American Institutions,

I can unabashedly say that until this sum-

mer I had no idea what an investment

F8��� �±� 8� �8�8tb�b�¼� O��´Á�¼��t� o±��did, let alone the difference between

the two. However, after speaking with a

Brown alum now at Boston Consulting

Group and an uncle who put some time

in at Goldman Sachs, I’ve found that

F�¼|��n�¼|b´b�¼Ê�b´��n�o±�´��nnb±�Á��¦Áb�opportunities for those of you who just

can’t stand another SN2 reaction. Even if

you are set on Wall Street and have found

yourself attending information sessions

ad nauseum this fall, I feel for you; even

o±�´�È�¼|��� ¼|b� ´8�b� ��YÁ´¼±Ê� ´bb�� ¼��blur together. As a result, I offer the fol-

lowing distinctions between investment

banking and management consulting to

get you on your way.

What does an investment bank do? What is management consulting?An investment banker provides two ser-

vices to its clients. First, she helps com-

panies to raise money, either by issuing

stock (an ownership in the company) or

debt (basically, an I.O.U). Second, she

can provide certain advisory services,

such as helping its clients decide whether

to acquire another company.

Management consulting is the prac-

tice of advising senior business execu-

¼�Çb´����|�È�¼|bÊ��8Ê����±�Çb�¼|b�bno-

ciency and overall performance of their

�±t8��Í8¼���´¡����´Á�¼��t�o±�´�¼Ê��O8��Ê�serve businesses, but may be hired by

t�Çb±��b�¼8�� 8�Y� ���~�±�o¼� 8tb�O�b´�as well. Consultants are expected to re-

search case-related information, derive

insights, and communicate solutions to

their clients.

Life as an analyst or a consultantHours for investment banking typically

run from 90 to 100 hours a week. Often-

times, these hours are volatile, meaning

analysts or investment bankers are often

“on-call.” Those who work in investment

F8����t� �b8±�Ê� 8�È8Ê´� |8Çb� 8�� �noObV�with the rare opportunity to travel to

client sites. Investment bankers usually

earn around $70,000 a year, often accom-

panied by a $60,000 to $70,000 bonus.

Consultants work a 60 to 80 hour

work week, and, like investment bankers,

are also subject to the working needs and

whims of the client. Those who work in

management consulting travel frequent-

ly, usually accompanied by weekly check-

��´�¼��8���noOb¡��8�8tb�b�¼�O��´Á�¼8�¼´�usually earn around $75,000 to $85,000

a year, plus other bonus matching pro-

t±8�´�¼|8¼�Ç8±Ê�n±���o±��¼��o±�¡

Exit opportunitiesComing from investment banking, em-

ployment opportunities are typically in

private equity, hedge funds, or industry.

Returning to school and receiving an

MBA is always an option.

Management consulting often leads

to jobs in private equity, hedge funds

�¼|�Át|���¼�8´��±���oO8��Ê�8´���Çb´¼�b�¼�banking does), entrepreneurship, in-

YÁ´¼±ÊV� ���~�±�o¼� O��´Á�¼��tV� �±� È�±��in the public sector. Just as with invest-

ment banking, those who work in man-

agement consulting often go to graduate

or business school upon their departure

from the industry.

InterviewingThe interview process for investment

banks is characterized by “Super Days,”

in which an applicant is interviewed in

rapid succession by several members

�n� 8�� �noOb¡� +ÁO|� ��¼b±Ç�bÈ´� 8±b� 8� ¼±Áb�test of endurance for the applicant, and

something for which the Bulge Bracket

Banks are known.

A hallmark of the management con-

sulting interview is known as “casing,”

where applicants are asked how they

would approach a client issue.

QuiCK viewhoursInvesting Banking:

90-100+ hours per week, volatile,

“on-call” hours

Consulting:

60-80 hours per week, subject to cli-

ent whims as well

eXiT opportunitiesInvestment Banking:Private Equity, Hedge Funds, MBA,

Industry

Consulting:Private Equity, Hedge Funds (though

��¼� 8´� �±���oO8��Ê� 8´� ��Çb´¼�b�¼�Bankers), Entrepreneurship, MBA

and other Grad School, Industry,

���~(±�o¼���´Á�¼��tV���Çb±��b�¼

noTaBle firmsInvestment Banking:Goldman Sachs, J.P. Morgan, Mor-

gan Stanley, Credit Suisse, Deutsche

Bank, Barclays, UBS, Citi, Bank of

America Merrill Lynch

Consulting:McKinsey & Co., Bain & Co., The

Boston Consulting Group, Booz

and Company, Deloitte Consulting,

Monitor Group, Olivery Wyman, Ac-

centure, IBM

noTaBle peopleInvestment Banking:Jim Cramer, Hank Paulson, Erin Bur-

nett, Tony Blair, Steven Rattner

Consulting:Mitt Romney, Meg Whitman, Benja-

min Netanyahu, Ira Magaziner, Bob-

by Jindal

Carnitas & Coldplay:

Organic BeginningsChipotle positions itself at the fore-

front of a fast food revolution under the

banner “Food with Integrity.” In 1992,

founder Steve Ells was inspired by an

assembly line of burrito-makers in San

Francisco’s Mission district, and Chipotle

was born. Ells’ empire grew quickly, ex-

panding outside Colorado after McDon-

alds acquired a majority stake in Chipotle

in 2001.

Chipotle had begun serving natural-

ly raised pork a year earlier when they

found that their pork, or carnitas, was

not selling as well as other meats. After

some investigation, Chipotle found that a

partnership with Niman Ranch, a purvey-

or of humanely raised, high-quality meat,

would not only make their carnitas more

popular, but also allow them to develop a

narrative around the partnership. Ells de-

clared that he did not want to support the

disturbing conditions of factory farmed

pigs, and public relations director Chris-

topher Arnold recognized the potential

in emphasizing Chipotle’s commitment

to naturally sourced ingredients. Now,

the majority of chicken and meat served

at Chipotle is naturally raised, 40 percent

of the beans are organic. Chipotle serves

50 percent of an ingredient (when it in

season) from a local grower. Chipotle’s

stock went public in 2006, and immedi-

ately rose. It continues to climb—today,

it is near its all-time high at 433.4.

Food with IntegrityChipotle’s “Food with Integrity” cam-

paign, expressed largely in qualitative

terms of commitment and goals, is ulti-

mately just as strategic as it is revolution-

ary. Initially, Chipotle misgauged public

interest in sustainable food as a means

of maintaining long-term customers

across the country. CEO Mark Crump-

acker commented that Chipotle had

overestimated their customers’ concern

about animals and the environment: “It

turned out to essentially not be true,

only 20 to 30 percent of those people

actually care about that stuff.”

Chipotle also suffered attacks for its

lack of transparency; it became unclear

what “integrity” really meant. Hesitating

until after a vocal protest outside its head-

quarters to sign a contract with a tomato

pickers’ NGO, which placed a penny per

pound surcharge on tomatoes, tarnished

Chipotle’s reputation. In turn, Chipotle

launched an initiative to attract new cus-

tomers and re-inspire existing ones to eat

their burritos with pride. Chipotle real-

ized that its brand could not depend on

the assumption that touting their consci-

entiousness would draw customers. They

had to generate content to garner inter-

est in food integrity as a concept. The

company debuted this shift most clearly

through their award winning commercial

“Back to the Start,” which featured music

from Coldplay performed by Willie Nel-

´��¡�,|b�´|�±¼�o���8��b8�´�¼��¼|b��8¼|�´�of the viewer, inspiring him or her to

support a sustainable food system, and

lends Chipotle the image of a committed

purveyor of naturally raised food. The

recently released “Scarecrow” advertise-

ment and app follows a similar narrative -

ultimately, a lone farmer breaks out from

a factory farming dystopia.

The caring consumerSuch advertisements are indicative of

Chipotle’s “Cultivate a Better World

Campaign,” which revolves around the

establishment of an emotional connec-

tion with the customer, usually through

descriptions of their commitment to the

food awareness cause. Chipotle contin-

ues to accomplish its goals. It has grown

to reach nearly 2,000 locations, and it

recently opened ShopKit, a similar busi-

ness model for a streamlined build-your-

own South East Asian inspired bowl.

If Chipotle wants to remain a leader

in this movement, its next step should

be to increase its credibility by quantify-

��t� �¼´� O����¼�b�¼� ��� ¼b±�´��n� Çb±�obY�standards. Chipotle has the potential to

transform the relationship between fast

food and sustainability but must reveal

the facts behind its feel-good burrito to

legitimize its model.

by Camila McHugh

from WaylanD toThe business

model

JOIn The InTercOllegIaTe

FInance JOurnalFor more information, check out the “GET INVOLVED” tab on our

website!

Become a general body member, submit to our next edition, or join one

of our sub-teams: design, business development, and web.

If you have any questions, please contact team@theifj.com or

alex_drechsler@brown.edu.

J P J F Q I S L N V P E FX X X M F I P O O A D J IA B I X A Y I N I X R Q NT W U X F Q H W T S A M AE O K J S C S O I X O R NP J H H A K R R U N B Q CV T N C S X A K T A D C IN V W N Q S L S K W N W AQ Y A Y S I O T O A A C LV O E G O D H U W R M B NL H P F X H C D U D O O EK G R X Y Z S Y Q K O L EC R I X S T N A R G R E D

quiz: Where in the world should I go for a career in finance?

Interactive Features "e Intercollegiate Finance Journal December 201334

Check out your result on our website, www.theifj.com!

Word search: College Financial Aid Terms to Knowby Caroline Vexler

Words

Award

FAFSA

Financial Need

Grants

Loans

Room and Board

Scholarships

Tuition

Work Study

Where would you go on an ideal vacation?a. The Middle East

b. Central Europe

c. China

d. The United Kingdom

e. Asia

f. Western Europe

What kind of city do you want to live in?a. Up-and-coming

b. Many tourist options

c. Crowded

d. Old and cultured

e. Fun

f. High quality of life

What climate do you prefer?a. Extremely hot

b. Temperate

c. Humid

d. Rainy

e. Hot summer/mild winter

f. Windy

What is your favorite food?a. Shawarma

b. Frankfurters

c. Chinese food

d. Fish and chips

e. Sushi

f. Chocolate

How high can you afford a cost of living?a. Low

b. Moderately low

c. High

d. Moderate

e. Extremely high

f. Very high

What languages can you speak?a. Arabic and English

b. German

c. Mandarin or Cantonese

d. English only

e. Japanese

f. German, French or English

by Caroline Vexler