Stick with Accounting or Switch to Finance?

Finance at the level you are looking represents ad hoc sport. You use basic statistical analysis (standard deviation and beta) fundamental financial statement analysis, earnings projections combined with Price Earnings ratios for projecting future stock prices. You can throw in a little behavioral finance. Look at any corporate finance textbook -- they all have the same subjects.

The problem you end up with -- you really have no way to take some ad hoc topics and create a meaningful way for predicting stock movements.

Certain people have had success with computational finance but you most likely require a masters degree in mathematics for such. You use high level mathematics as means for finding in efficiencies in the market. Basic finance will not help with this endeavor.

Thus, the student with an undergraduate degree in finance or a masters in finance looking to go the investment route does not really have much to offer for value added activity in the end. Now, you do see some make it but they work for large Wall Street firms.

/r/Accounting Thread