Kyle Jacobsen is graduating Spring 2019 and he is currently pre-business (Finance intended). Over the winter break, he had an externship at Edward Jones in Tempe, AZ.
Why did you want to do this externship? I elected this externship in order to gain a better understanding of the techniques securities traders use to maintain proficiency in acquiring securities in the secondary market. The other appeal of the externship was the opportunity to distinguish the revenue generation differences between Edward Jones from bulge bracket investment banks. The opportunity also allowed for me to compare the trading position to other buy and sell-side positions in my desired career field of investment banking. Ultimately, the experience served as a method for me to recognize what market-based skills I can develop at Eller to effectively stand out in the competitive field.
What did you do during this job shadow experience? Over the duration of the day, I shadowed four different trading desks at the Edward Jones Tempe headquarters. I spent time on the unit investment trust, equity trading, municipal, and corporate bond trading desks. The externship occurred during trading hours so it was valuable to observe how the traders balanced various orders and tasks while still reacting to market developments. Off of the trading desks, I was fortunate enough to meet with the trading floor managing partner and discuss different roles on the floor. The day concluded with a Q&A session with two traders and a tour of the different amenities available to the employees.
What did you learn as a result of the externship? The time I spent with traders taught me the crucial role they serve in scaling in client positions and ensuring the best execution prices on the bids they place for clients. The traders portrayed that one of the most important aspects of their jobs was ensuring proper risk management on client portfolio positions. I also learned about the certain specifications traders look for when bidding on municipal fixed income securities. In the equities trading division, I was taught how traders used the correlation between market volume and position size to ensure that their bids were not causing drastic price changes on specific stocks. Lastly, I learned that the utmost priority for traders was ensuring that they were allocating their client’s capital in a way that paralleled their high ethical standards as a firm.