# Where can I learn banker talk from? Investment banking...Watch

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#1
I don't understand all the technical talk like this...

Assuming a tax rate of 30%, if depreciationincreases by \$100 and pretax income decreases by \$100, taxes will decrease by \$30 (\$100 * 30%), net income (NI) will decrease by \$70 (\$100 * (1 – 30%)) and cash flow from operations will increase by the amount of the tax deduction. This causes a \$30 increase of cash on the balance sheet, a \$100 reduction in PP&E due to the depreciation and a \$70 reduction in retained earnings.

I'm not asking you to explain it to me but I just want to know where can I learn all this banker talk from? What books/websites do you suggest?

Also, apart from Financial Times, are there any other newspapers I should bother reading?

How long will it take for me to learn banker talk? I start university in September so I'm hoping I can learn it from June - September because I just want to focus on A Levels right now... Is that possible?
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4 years ago
#2
Do a basic financial accounting course, you'll be fine.

lmao @ banker talk.
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4 years ago
#3
(Original post by Da Di Doo)
I don't understand all the technical talk like this...

Assuming a tax rate of 30%, if depreciationincreases by \$100 and pretax income decreases by \$100, taxes will decrease by \$30 (\$100 * 30%), net income (NI) will decrease by \$70 (\$100 * (1 – 30%)) and cash flow from operations will increase by the amount of the tax deduction. This causes a \$30 increase of cash on the balance sheet, a \$100 reduction in PP&E due to the depreciation and a \$70 reduction in retained earnings.

I'm not asking you to explain it to me but I just want to know where can I learn all this banker talk from? What books/websites do you suggest?

Also, apart from Financial Times, are there any other newspapers I should bother reading?

How long will it take for me to learn banker talk? I start university in September so I'm hoping I can learn it from June - September because I just want to focus on A Levels right now... Is that possible?
That's financial accounting, not "banking" (high finance), and it's really not hard. Basically, because depreciation is included in the calculation of operating profit, by applying depreciation to an asset you post a lower profit and need to pay less tax.

That means on the "things you own" side your asset declines in value by £100 and you no longer have a tax liability of £30 so your cash reserves stay £30 higher. Net loss of £70; and concomitantly you end up with £70 less "retained" profits being returned to the company owners.

"Operations" means the costs and revenues incurred directly in the business of producing and selling your product. The rationale for including depreciation of PP&E (property, plant and equipment) as an operating expense, i.e. before calculating operating profit, is because depreciation depends either on use (the profits are generated by use of assets such as machines) or the passage of time (relevant because the revenue/expenses/profit are calculated over a given period of time).

If you didn't do this, you would post larger profits on paper, but then when suddenly the machine you've been using for 20 hours a day to create your product breaks down it wouldn't have been accounted for and you would be in a bit of a bind, especially when you consider the retained profits (where the money for a replacement would be) are owned by the company owners and can be taken out of the company as they desire. Even if we ignore the whole tax disadvantage, if they've spent the extra £100 a year they thought they had on a holiday to Barbados then even with the best will in the world they may not be able to save the company.

A basic accounting textbook and a cursory glance at some simple financial statements would suffice to understand information like the above.
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#4
(Original post by Abdul-Karim)
Do a basic financial accounting course, you'll be fine.

lmao @ banker talk.

Like what? I googled it and keep seeing masters courses and undergraduate degrees but I don't want to do either.
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4 years ago
#5
(Original post by Da Di Doo)
Like what? I googled it and keep seeing masters courses and undergraduate degrees but I don't want to do either.
YouTube Introduction to financial accounting and you can learn from that, if you're really keen.
0
4 years ago
#6
I learned all these in like year 10 doing economics.
0
4 years ago
#7
(Original post by clh_hilary)
I learned all these in like year 10 doing economics.
What exam board?
0
4 years ago
#8
(Original post by Abdul-Karim)
What exam board?
I didn't study in the UK.
0
4 years ago
#9
(Original post by clh_hilary)
I didn't study in the UK.
What syllabous, would like to take a look
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4 years ago
#10
(Original post by Abdul-Karim)
What syllabous, would like to take a look
It's the now abolished HKCEE. I don't know what they do the new exam.
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#11
(Original post by clh_hilary)
I learned all these in like year 10 doing economics.
This thread is not for show offs.
0
4 years ago
#12
(Original post by Da Di Doo)
I don't understand all the technical talk like this...

Assuming a tax rate of 30%, if depreciationincreases by \$100 and pretax income decreases by \$100, taxes will decrease by \$30 (\$100 * 30%), net income (NI) will decrease by \$70 (\$100 * (1 – 30%)) and cash flow from operations will increase by the amount of the tax deduction. This causes a \$30 increase of cash on the balance sheet, a \$100 reduction in PP&E due to the depreciation and a \$70 reduction in retained earnings.

I'm not asking you to explain it to me but I just want to know where can I learn all this banker talk from? What books/websites do you suggest?

Also, apart from Financial Times, are there any other newspapers I should bother reading?

How long will it take for me to learn banker talk? I start university in September so I'm hoping I can learn it from June - September because I just want to focus on A Levels right now... Is that possible?
That really wasn't "banker talk". That was basic stuff that anyone with a rudimentary grasp of money and finance should be able to make some sense of.
0
4 years ago
#13
(Original post by Da Di Doo)
This thread is not for show offs.
You asked: 'where can I learn all this banker talk from'

0
#14
(Original post by Potally_Tissed)
That really wasn't "banker talk". That was basic stuff that anyone with a rudimentary grasp of money and finance should be able to make some sense of.
But that's the thing... I don't have a "rudimentary grasp of money and finance."

I asked where I can learn all this gibberish from so that I can speak it too.
0
4 years ago
#15
I need to get my eyes checked. Legit read that as banter talk. One does not simple learn banter.
1
#16
(Original post by Abdul-Karim)
YouTube Introduction to financial accounting and you can learn from that, if you're really keen.
Do you think that self teaching myself Economics and Accounting A Levels will help?
0
4 years ago
#17
(Original post by Da Di Doo)
Do you think that self teaching myself Economics and Accounting A Levels will help?
Learning more never hurts. I think for banking side, accounting is more relevant than economics.
1
4 years ago
#18
(Original post by Da Di Doo)
Do you think that self teaching myself Economics and Accounting A Levels will help?
Just get a basic accounting textbook.

Posted from TSR Mobile
1
4 years ago
#19
Banker talk is more like: "Mate, do you know when that dumb c*** is going to be buying that s***" "Alright p****, think he's gonna buy at the end of the day. It's absolute dog s*** what he's buying, but he's such a dumb c*** I've talked him into buying it" " "F****** great, let's see if I can mug that c**** off by pushing the price up"
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