Expert: Steve Hach - 2/4/2009

Question
Hello, this is a bit off topic, but I am a sophomore in college and trying to decide if I should keep pursuing Finance as a major.  The thing is, I hate accounting and am wondering if my finance classes would be simular to my accounting ones.  I interested in the stock market and such, but not accounting.  Is this going to be a problem? thanks

Answer
Hello Miss Kitty,

I will give the short answer that "yes" finance is going to be similar to accounting and that almost any "traditional" finance career is going to be heavily based on accounting.

Other options for finance include quant-type jobs, but these are typically very math-oriented people as well.

It is very difficult to have a career in finance without basic knowledge of accounting, balance sheets, etc.

Finance, for the most part, IS accounting, how else can you track a company, figure a stock price, etc.

Think about the stock market, how can you possibly pick one stock over another if you cannot figure out the company in question's finances?

Now, there are certainly people in finance that have no accounting or business background--and I happen to be one of them--but I got my job through non-conventional means.  My CEO also has no business training per se, but he ran several businesses on his own throughout college.

There are people that work in the field who are sales people, managers, etc. that are not finance/business school grads, but for the most part Wall St is stocked with people that came up with finance degrees.

However, if you hate accounting, I don't think you are going to enjoy a business school/finance degree education.  You may not even like the typical entry-level job you will get--if you are lucky these days--with that degree.

I have noticed a problem in the field where everyone thinks they are going to be a billionaire hedge fund manager within five years of graduation.   If that is what you mean by "I am interested in the stock market" then I suggest you find another major ASAP.

Those days, I can assure you, are over.

My advice is to study something you love in college and get good at it, the career will work itself out.

Best,

Steve