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Financial Analyst


Description

In today's fast-paced marketplace, companies have become more concerned with their financial planning and investing because they want to ensure their company is producing and investing at its highest potential. The result is the trend in hiring financial analysts to do this work specifically. Financial analysts collect and analyze financial marketplace information such as economic forecasts, trading volumes, financial backgrounds of companies, historical performances and future trends of stocks, bonds and other investment instruments to provide financial and investment advice for their company or their company's clients. Financial analysts seek out possible risks and potential returns from investments, provide guidance and make recommendations on these findings. They assess the economic performance of a company and seek ways to invest their money profitably.

In large institutions such as banks, pension funds and governments, financial analysts may monitor national and international stock and bond markets and the economic conditions surrounding all other markets. They also follow major American and international industries such as oil and gas, forestry, mining, banking and telecommunications, conducting detailed studies of different investment opportunities that a company may be interested in investing in.

Financial analysts then prepare reports or make presentation to managers that recommend how the company should invest its money and whether they should buy or sell certain investments or securities. Another method of analysis is using statistical data to measure the different financial risks associated with a particular investment idea.

Financial analysts read company financial statements and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company's value and project future earnings. They often meet with managers to get better insight into a company and determine the managerial effectiveness. Usually financial analysts conduct studies of an entire industry, assessing current market trends, products and industry competition. They must keep up-to-date on new regulations or policies that may affect the industry, and very importantly, monitor the economy to determine its effect on potential earnings.
 
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Program Spotlight
Matching School Ad
Southern New Hampshire University
Southern New Hampshire University. Private. Nonprofit. Accredited.
Programs Offered:
  • MS Finance
  • IMBA - Finance
  • MBA with concentration in Finance
  • And more...

 

 



  Average Earnings  
Lowest 10% of Earners:
$34,570
 
Median Salary:
$57,100
 
Highest 10% of Earners:
$108,060

  Interests and Skills  
Financial analysts must possess the analytical skills required to conduct thorough, objective research and make recommendations for investment decisions. They have excellent communication skills because they write reports and publicly present their research and findings to management officials in companies. Analysts have high ethical standards and can keep information confidential because they are often dealing with millions of dollars in an organization.

Successful financial analysts enjoy taking a methodical approach to collecting information, working with numbers, analyzing problems and finding innovative solutions. There is some risk involved in the work therefore they must be confident in their decision making skills and stock market knowledge.
 

  Typical Tasks  
  • Collect financial and investment information about companies, stocks, bonds and other investments using daily stock and bond reports, economic forecasts, trading volumes, financial periodicals, securities manuals, company financial statements and other financial reports and publications
  • Examine and analyze financial and investment information collected, including profiles of companies, stock and bond prices, yields and future trends and other investment information for use in making investment decisions
  • Provide investment advice and recommendations to senior company officials, pension fund managers, securities agents and associates
  • Prepare company, industry and economic outlooks, analytical reports, briefing notes and correspondence
  • Draw charts and graphs to illustrate reports, using the computer
  • Call brokers and purchase investments for a company, according to company policy
  • Financial analysts often work long and irregular office hours. Days are often filled with meetings and phone calls therefore in order to complete research, analysts may be required to stay late in order to finish their work. Further, some meetings may take place at night or on weekends. Financial analysts frequently travel to companies and conduct interviews with investors. They usually work on computers with specific company databases or financial software programs.

  Workplaces, Employers and Industries  
  • Financial analysts are generally employed in the head offices of securities firms, investment banking firms, governments, banks, trust companies, investment and underwriting firms, stock and mortgage brokerages, commodity exchanges and other companies and non-profit organizations.
  • Wealthy foundations, educational institutions and, sometimes corporations with substantial amounts of their own money to invest also employ financial analysts. Otherwise, they may be self-employed and either own their own analyst firm or work as a freelancer.

  Long Term Career Potential  
Financial analysts usually come equipped with years of experience, often in other sectors of business. They are generally not young and fresh out of university as companies tend to entrust their money with older, more experienced investors. Also, it takes years to make a name for yourself in the industry and get contracted by companies to conduct financial analysis. Experienced financial analysts may decide to specialize in a particular aspect of financial investing, for example mergers and acquisitions, or move into supervisory or senior management positions in larger companies or professional associations. More established financial analysts may write a financial column for a newspaper, or appear on television or radio shows to offer their financial suggestions.
 

  Educational Paths  
Financial analysts require an undergraduate degree in commerce, finance or economics. Preference is certainly given to applicants who have post-graduate degrees such as an Master's of Business Administration (MBA) or a combination of degrees in related fields. For example, a degree in forestry is an asset for financial analysts working in the forestry and logging industry. Most companies require prospective financial analysts to have several years of relevant training and work experience.
 

Sources:
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2014-15 Edition, http://www.bls.gov/ooh/
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Employment Statistics, 2002, http://www.bls.gov/oes/2002/oes_nat.htm

Featured Schools

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Southern New Hampshire University  Online
Southern New Hampshire University. Private. Nonprofit. Accredited.
Programs Offered:
Campus Locations:
  • , NH

 
Keiser University  Online

For over 35 years, Keiser University has provided student-centered, quality career education. Keiser University Online offers degree programs online to prepare students for in-demand professions.

Programs Offered:
  • Business Administration, BA - Finance
Campus Locations:
  • , FL

 
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Liberty University provides a world-class education with a solid Christian foundation, equipping men and women with the values, knowledge, and skills essential for success in every aspect of life.

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University of Maryland at College Park  Online

Study online with University of Maryland at College Park.

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Campus Locations:
  • College Park, MD

 
Northcentral University  Online

Earn your graduate degree online with Northcentral University.

Programs Offered:
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Post University Online  Online

At Post University, we believe you shouldn’t have to put your life on hold to further your education.

Programs Offered:
  • B.S. in Finance / Corporate Finance
  • Certificate: Finance
  • B.S. in Finance / Personal Financial Banking
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Campus Locations:
  • Waterbury, CT

 
California College San Diego  Online

The Secret to Getting Ahead is Getting Started

Programs Offered:
  • Business Management & Accounting (AAS)
  • Accounting (BS)
  • Business Management & Accounting - Property Management (AAS)
Campus Locations:
  • San Diego, CA

 
National Career College  Online
Choosing a school and a new career path can be a very overwhelming process.
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San Joaquin Valley College  Online

San Joaquin Valley College - A Private Junior College.

Programs Offered:
  • Certificate - Business Administration (Accounting)
Campus Locations:
  • Madera, CA

 
Institute of Technology  Online

You can get started on a new career with Institute of Technology.

For more information about our graduation rates, the median debt of students who completed the program, and other important information, please visit our website at www.iot.edu/disclosure

Programs Offered:
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Campus Locations:
  • Clovis, CA

 
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