Search Results for: trading

Deal Structuring in Investment Banking: How Earn-Outs, Rollover Equity, and Contingent Consideration Shape M&A Outcomes

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance, 2025–2027) examines how investment banks structure consideration in M&A deals through earn-outs, rollover equity, and other forms of contingent consideration, and how these tools redistribute risk and return between buyer and seller. Context and objective In most introductory valuation courses, M&A is presented … Read more

February 2026: Derivatives – Monthly Selection from the SimTrade blog

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Most Read Articles about Derivatives on the SimTrade Blog This monthly selection highlights key articles on derivatives, chosen based on their pedagogical value, practical relevance, and readership engagement.    ▶ Jayati WALIA Brownian Motion in Finance    ▶ Akshit GUPTA Option Greeks – Vega    ▶ Shengyu ZHENG Pricing barrier options with analytical formulas    ▶ Tianyi WANG Understanding … Read more

Structured products: what’s behind them?

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In this article, Jules HERNANDEZ (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) writes about structured products, the different types of products sold to institutional and retail investors. This article aims to introduce structured products, explore their various types, and explain how these instruments are engineered by structurers. This article will also study … Read more

“Time in the market beats timing the market.” – Kenneth Fisher

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There are two primary approaches to investing in the stock market. Some market participants adopt a trading-oriented strategy; they believe that financial gains depend on their ability to predict the evolution of the market (when to enter and when to exit), or in other words, they try to time the market. Other market participants favor … Read more

“Investing is stupid if you’re more worried about short-term volatility than long-term quality.” – Charlie Munger

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Investing is often a battle with our own emotions. We see prices rise sharply and crash just as fast, and this can lead to very bad investment decisions. However, Charlie Munger’s wisdom comes once again handy, to remind us to avoid overlooking at prices all day-long, because “Investing is stupid if you’re more worried about … Read more

“The market is a continuously unfolding process of discovery.” – Peter Steidlmayer

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Financial markets move every second, reacting to every new piece of information, every financial statement, every geopolitical event. Prices rise, fall, move too far, come back again, and for anyone observing from the outside, this constant motion can easily appear chaotic. Yet, behind this apparent disorder lies a deeper structure, a logic shaped by the … Read more

“The stock market is designed to transfer money from the impatient to the patient.” – Warren Buffett

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Financial markets move with a constant rhythm, shaped by news, expectations, and the psychological impulses that influence investors every day. Prices advance, decline, accelerate suddenly, or pause without warning, and to the untrained observer this flow can seem arbitrary or even irrational. This can make it hard for investors to resist the urge of buying … Read more

My Personal Experience in Marketing, and How It Links to Finance

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In this article, Guylan ABBOU (ESSEC Business School, Global Bachelor’s in Business Administration (GBBA) – Exchange Student, 2025) shares his professional experience in marketing and explains how it connects to finance. Introduction Hello, my name is Guylan. While studying marketing in Spain, I completed several internships across marketing departments. I interned in four roles across … Read more

January 2026: Most Read Posts on the SimTrade Blog

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Based on WordPress statistics, the following ranking presents the five most read articles on the SimTrade blog in January 2026. These posts cover key topics in financial markets, quantitative finance, risk management, derivatives pricing, and macroeconomic analysis.    ▶ Anant JAIN Top 12 FMCG Companies Worldwide: Growth, Market Share, and Investment Opportunities    ▶ Federico DE ROSSI … Read more

Measures and statistics of business activity in global derivative markets

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) explains how the business of derivatives markets has evolved over time and the pivotal role of the Black–Scholes–Merton option pricing model in their development. Introduction The derivatives market is among the most dynamic … Read more

Volatility curves: smiles and smirks

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) analyzes the various shapes of volatility curves observed in financial markets and explains how they reveal market participants’ beliefs about future asset price distributions as implied by option prices. Introduction In financial markets … Read more

“The big money is not in the buying and selling, but in the waiting.” – Charlie Munger

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In an era dominated by instant trading for individuals, high-frequency trading firms, ever-faster market infrastructures, and social-media-driven market narratives, patience has become an underrated virtue. In this article, Hadrien PUCHE (ESSEC Business School, Grande École Program, Master in Management, 2023-2027) comments on Charlie Munger’s famous quote about the role of patience and discipline in long-term … Read more

Understanding the Almgren-Chriss Model for Optimal Trade Execution

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In this article, Bryan BOISLEVE (CentraleSupélec – ESSEC Business School, Data Science, 2023-2025) explains the Almgren-Chriss model, a fundamental framework in quantitative finance for optimal execution of large trading orders. Introduction Imagine you are a portfolio manager at a large asset management firm, and you need to sell 1 million shares of a stock. If … Read more

My internship experience as a Counterparty Risk Analyst at Société Générale

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In this article, Bryan BOISLEVE (CentraleSupélec – ESSEC Business School, Data Science, 2025-2027) shares his professional experience as a Counterparty Risk Analyst intern within Société Générale’s investment banking division. About the company Société Générale is one of the largest European banking groups, offering retail banking, corporate and investment banking, and specialised financial services in over … Read more

2025: The 10 Most Searched Finance Articles on the SimTrade Blog

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Top Searched Finance Articles on the SimTrade Blog Based on Google search queries, the following ranking presents the ten most frequently searched articles on the SimTrade blog in 2025. These posts cover key topics in financial markets, quantitative finance, risk management, derivatives pricing, and macroeconomic analysis.    ▶ Jayati WALIA The historical method for VaR calculation … Read more

How to approach a stock pitch

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In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains how to approach a stock pitch. Introduction Are you preparing for an interview for investment banking? Hedge fund? Or just participating in a finance competition? Learning how to realize a stock pitch is one of the most useful … Read more

Implied Volatility and Option Prices

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) explains how implied volatility is calculated or extracted from option prices using an option pricing model. Introduction In financial markets characterized by uncertainty, volatility is a fundamental factor shaping the pricing and dynamics … Read more

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher

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Financial markets are filled with numbers that move every second, yet many investors miss the most important insight: true value often lies hidden beneath the surface of the price. In this article, Hadrien Puche (ESSEC, Grande École, Master in Management, 2023-2027) comments on this quote by Philip Fisher, who reminds us that understanding a stock’s … Read more

My work-study experience in the Middle Office at Amundi

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In this article, Clara COMBELLES (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) shares her professional experience as a Middle Office analyst at Amundi, Europe’s leading asset manager. About the company Amundi is the largest asset manager in Europe and among the top ten worldwide. Created in 2010 through the merger of Crédit … Read more