Analysts are highly sought after in the financial services business. One of the most important responsibilities of a financial analyst is to spend hours poring over data to discover new possibilities or assess the results of past decisions or investments. It is not uncommon for financial analysts to have both entry-level and management positions within a company. Getting started in the financial services business is difficult due to the high level of competition.

What Is a Financial Analyst's Job?

Financial analysts analyze financial data and then utilize their findings to assist businesses in making strategic decisions. A lot of the time, their findings are intended to help businesses make better investment decisions.

Financial analysts look at macroeconomic and microeconomic factors when making forecasts about specific companies, sectors, and industries. If you're looking to take action, they'll tell you what to do based on the company's overall performance and prognosis.

Education and Training Requirements

The requirements to become a financial analyst are far more flexible and open-ended than many other well-paying professions. As compared to law and medicine, there are no industry-wide educational requirements. Whether or not you are needed to obtain a license depends on various variables, including your employer and the nature of your work.

That being said, a bachelor of arts degree is becoming a de facto necessity for becoming a financial analyst in today's workplace. Accounting and math, as well as biology and engineering—especially if you want to become an analyst in those fields—are other majors that are highly regarded.

Exams to Pass for Certification

Consider taking the Series 7 and Series 63 tests, or applying to the Chartered Financial Analyst program, if you aren't an MBA graduate student or an economics major as an undergraduate. A FINRA member company or regulatory entity must sponsor you to take the Series 7 test. 1 With the Securities Business Essentials exam, introduced in October of last year, FINRA is making it simpler for new entrants to the securities industry by reducing the amount of time they spend completing several examinations.

List of Analyst Job Categories

There are several job titles and career pathways available in the subject of financial analysis. Analysts who work for the following firms fall into one of three categories:

• Buy-side firms

• Sell-side firms

• Investment banks

Local and regional banks, insurance firms, real estate investment brokerages, and other data-driven businesses may also employ financial analysts. Anyone who has to make big money decisions regularly might benefit from the services of a financial analyst.

Buy-Side Analysts

The buy-side is where the vast majority of financial analysts are employed. Whether investing in stocks and other assets for an in-house fund, purchasing income properties (in the case of a real estate investment business), or allocating marketing expenditures, they assist their employers in making financial choices. Some analysts work for a third-party organization that delivers financial research to its clients, not for a single employer. A financial analyst's work is so valuable that an entire industry has been built around it.

Sell-Side Analyst

Securities analysts assess and compare the quality of securities in a certain area or industry at a sell-side business. They then prepare research reports with specific recommendations such as "buy," "sell," "strong buy," "strong sell," or "hold" based on this analysis. They also keep tabs on the stocks in a fund's portfolio to see whether and when the fund should sell its holdings in those stocks. In the financial sector, the advice of these analysts is taken very seriously, even by those who work for buy-side companies.

Investment Bankers And Equity Analysts

It is not uncommon for investment banking analysts to weigh in on potential mergers and acquisitions, initial public offerings, and other business transactions. Investment bank analysts use current financial circumstances and projections to determine if a merger or venture capital investment is acceptable for that bank's customer and whether or not a client should participate in a company.

An equities analyst is a financial analyst who works with large banks to assist them in deciding whether to purchase or sell stocks and find promising initial public offerings. Equity markets are their primary emphasis; they assist investors in locating firms that provide the most attractive ownership options.

Not Mediocre: Median Salary

In New York City, financial analysts are paid much less than other financial professionals. However, the median annual compensation for an entry-level financial analyst in the United States is much greater than the typical annual salary for a full-time wage or salary worker.

Summary

Preparation and hard effort are necessary for a job as a financial analyst. Aside from monetary gain, being an active participant in the business world may also bring a great deal of personal fulfillment.