What Does a Financial Analyst Do?
Sometimes referred to as a securities or investment analyst, the financial analyst is concerned with providing a comprehensive understanding of the financial status of a given investment opportunity. A qualified chartered financial analyst can find employment in a number of different settings. Among the choices for work that are open to the CFA are positions within banks, investment firms, mutual and pension funds, and insurance companies. Chartered financial analysts tend to have a talent for doing research. Because one of the key roles of a financial analyst has to do with gathering data that influences the decision to invest in a particular venture, the competent analyst will be aware of the obvious sources of pertinent financial data. Along with the common sources, the analyst will also have some creative ideas of unorthodox routes of investigation that may be necessary to locate relevant information. The financial analyst does more than simply assemble data into a spreadsheet and
The role of a Financial Analyst is to conduct studies, evaluate data and present conclusive information that aids in making sound financial decisions. This job can vary significantly depending on which industry the Financial Analyst is involved and how much experience the Financial Analyst has acquired. In the private business sector, Financial Analysts will review the costs associated with running a business and will perform cost benefit analysis of programs under scrutiny. Data will be accumulated and based on the Financial Analyst’s knowledge of the industry, any laws or regulations, staffing costs, etc. decisions will be made to create more profit for the organization. In the banking or investment industries, Financial Analysts may carry the title Securities Analyst. In this industry, a Financial Analyst will only be valuable after he/she understands the money market through and through. These Financial Analysts have very high salaries, but they also need the highest of credentials
Financial analysts help people decide how to invest their money. They work for banks, insurance companies, mutual funds, and securities firms. They often meet with company officials to learn more about the firms in which they want to invest. After the meeting, they write reports and give talks about what they found out. Then they suggest buying or selling that firm’s stock. Financial analysts may specialize. Those in investment banking study the companies that want to sell stock to the public for the first time. They also might study the pros and cons of a merger or takeover. Financial analysts who are called ratings analysts find out if companies that issue bonds can repay their debt. Financial analysts usually work in offices. They may work long hours. Some may have to travel to visit clients or talk to investors, sometimes on evenings or weekends. Many also face the pressure of deadlines. They may do research on various firms after office hours, because their day is filled with tele
