Become A Finance Analyst
Where do you want to work?
Working As A Finance Analyst
- Analyzing Data or Information
- Getting Information
- Interacting With Computers
- Processing Information
- Communicating with Supervisors, Peers, or Subordinates
Deal with People
Mostly Sitting
Repetitive
$63,000
Average Salary
What Does A Finance Analyst Do
Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments.
DutiesFinancial analysts typically do the following:
- Recommend individual investments and collections of investments, which are known as portfolios
- Evaluate current and historical financial data
- Study economic and business trends
- Examine a company’s financial statements to determine its value
- Meet with company officials to gain better insight into the company’s prospects
- Assess the strength of the management team
- Prepare written reports
Financial analysts evaluate investment opportunities. They work in banks, pension funds, mutual funds, securities firms, insurance companies, and other businesses. Financial analysts are also called securities analysts and investment analysts.
Financial analysts can be divided into two categories: buy-side analysts and sell-side analysts.
- Buy-side analysts develop investment strategies for companies that have a lot of money to invest. These companies, called institutional investors, include mutual funds, hedge funds, insurance companies, independent money managers, and nonprofit organizations with large endowments, such as some universities.
- Sell-side analysts advise financial services sales agents who sell stocks, bonds, and other investments.
Some analysts work for the business media or other research houses, which are independent from the buy and sell side.
Financial analysts generally focus on trends affecting a specific industry, geographical region, or type of product. For example, an analyst may focus on a subject area such as the energy industry, a world region such as Eastern Europe, or the foreign exchange market. They must understand how new regulations, policies, and political and economic trends may affect investments.
Investing is becoming more global, and some financial analysts specialize in a particular country or region. Companies want those financial analysts to understand the language, culture, business environment, and political conditions in the country or region that they cover.
The following are examples of types of financial analysts:
Portfolio managers select the mix of products, industries, and regions for their company’s investment portfolio. These managers are responsible for the overall performance of the portfolio. They are also expected to explain investment decisions and strategies in meetings with stakeholders.
Fund managers work exclusively with hedge funds or mutual funds. Both fund and portfolio managers frequently make buy or sell decisions in reaction to quickly changing market conditions.
Ratings analysts evaluate the ability of companies or governments to pay their debts, including bonds. On the basis of their evaluation, a management team rates the risk of a company or government not being able to repay its bonds.
Risk analysts evaluate the risk in investment decisions and determine how to manage unpredictability and limit potential losses. This job is carried out by making investment decisions such as selecting dissimilar stocks or having a combination of stocks, bonds, and mutual funds in a portfolio.
Show More
Show Less
How To Become A Finance Analyst
Financial analysts typically must have a bachelor’s degree, but a master’s degree is often required for advanced positions.
EducationMost positions require a bachelor’s degree. A number of fields of study provide appropriate preparation, including accounting, economics, finance, statistics, and mathematics. For advanced positions, employers often require a master’s degree in business administration (MBA) or a master’s degree in finance. Knowledge of options pricing, bond valuation, and risk management are important.
Licenses, Certifications, and RegistrationsThe Financial Industry Regulatory Authority (FINRA) is the main licensing organization for the securities industry. It requires licenses for many financial analyst positions. Most of the licenses require sponsorship by an employer, so companies do not expect individuals to have these licenses before starting a job.
Certification is often recommended by employers and can improve the chances for advancement. An example is the Chartered Financial Analyst (CFA) certification from the CFA Institute. Financial analysts can become CFA certified if they have a bachelor’s degree, 4 years of qualified work experience, and pass three exams. Financial analysts can also become certified in their field of specialty.
AdvancementFinancial analysts typically start by specializing in a specific investment field. As they gain experience, they can become portfolio managers, who select the mix of investments for a company’s portfolio. They can also become fund managers, who manage large investment portfolios for individual investors. A master’s degree in finance or business administration can improve an analyst’s chances of advancing to one of these positions.
Important QualitiesAnalytical skills. Financial analysts must process a range of information in finding profitable investments.
Communication skills. Financial analysts must explain their recommendations to clients in clear language that clients can easily understand.
Computer skills. Financial analysts must be adept at using software packages to analyze financial data, see trends, create portfolios, and make forecasts.
Decisionmaking skills. Financial analysts must provide a recommendation to buy, hold, or sell a security.
Detail oriented. Financial analysts must pay attention to details when reviewing possible investments, as small issues may have large implications for the health of an investment.
Math skills. Financial analysts use mathematical skills when estimating the value of financial securities.
To be successful, financial analysts must be motivated to seek out obscure information that may be important to the investment. Many work independently and must have self-confidence in their judgment.
Show More
Show Less
Finance Analyst jobs
Finance Analyst Career Paths
-
Senior Finance Analyst 3.5 years
-
Lead Finance Analyst 3.3 years
-
Finance Analyst 3.0 years
-
Project Finance Analyst 2.7 years
-
Finance Analyst Assistant 2.6 years
-
Finance Analyst-Operations Finance 2.2 years
-
Contract Finance Analyst 2.0 years
-
Accountant 12.6%
-
Staff Accountant 12.5%
-
-
Senior Accountant 7.8%
-
Internship 7.0%
-
Business Analyst 5.8%
-
Finance Internship 4.5%
-
Analyst 4.2%
-
Cost Accountant 3.9%
-
Accounting Manager 3.9%
-
-
Accounting Clerk 3.7%
-
-
-
Controller 3.1%
-
Office Manager 2.8%
-
Finance Manager 2.6%
-
Budget Analyst 2.6%
-
Consultant 2.3%
-
Project Manager 2.2%
-
Senior Finance Analyst 24.8%
-
Finance Manager 8.7%
-
Business Analyst 6.3%
-
Controller 5.5%
-
Senior Accountant 5.4%
-
Accountant 5.4%
-
Finance Director 4.4%
-
Accounting Manager 4.3%
-
Consultant 4.1%
-
Vice President 3.7%
-
-
Project Manager 3.4%
-
Staff Accountant 3.1%
-
Manager 3.0%
-
Analyst 2.7%
-
Senior Analyst 2.6%
-
-
-
Finance Consultant 2.2%
-
Senior Manager 2.1%
Average Length of Employment
Top Careers Before Finance Analyst
Top Careers After Finance Analyst
Finance Analyst Demographics
Gender
-
Male
53.1% -
Female
42.8% -
Unknown
4.2%
Ethnicity
-
White
71.1% -
Asian
14.9% -
Hispanic or Latino
9.9% -
Unknown
2.8% -
Black or African American
1.2%
Languages Spoken
-
Spanish
33.5% -
French
11.2% -
Mandarin
10.8% -
Chinese
10.1% -
German
4.5% -
Russian
3.9% -
Cantonese
3.4% -
Portuguese
3.4% -
Italian
3.1% -
Hindi
3.0% -
Arabic
2.6% -
Japanese
2.5% -
Korean
2.2% -
Urdu
1.1% -
Gujarati
1.0% -
Polish
0.9% -
Vietnamese
0.9% -
Greek
0.7% -
Turkish
0.7% -
Hebrew
0.7%
Finance Analyst
Unfortunately we don’t have enough data for this section.
Finance Analyst Education
-
University of Phoenix
17.3% -
Northeastern University
5.9% -
DePaul University
5.5% -
Strayer University
5.5% -
New York University
5.5% -
University of Southern California
5.0% -
Drexel University
4.6% -
University of Houston
4.4% -
University of Texas at Austin
4.4% -
George Mason University
4.2% -
George Washington University
4.1% -
Fordham University
4.1% -
Georgia State University
4.0% -
Pennsylvania State University
3.9% -
Arizona State University
3.8% -
Michigan State University
3.7% -
Webster University
3.7% -
University of Maryland - University College
3.5% -
Florida International University
3.4% -
University of Connecticut
3.4% -
Business 30.8%
-
Finance 26.9%
-
Accounting 23.0%
-
Economics 4.1%
-
Management 3.3%
-
Marketing 1.7%
-
Project Management 0.9%
-
Political Science 0.9%
-
-
-
Law 0.8%
-
Mathematics 0.7%
-
-
Business Economics 0.7%
-
-
Psychology 0.7%
-
Real Estate 0.6%
-
-
Computer Science 0.6%
-
-
Bachelors
45.1% -
Masters
40.9% -
Other
7.7% -
Associate
2.4% -
Certificate
2.3% -
Doctorate
1.2% -
Diploma
0.3% -
License
0.1%
Schools
Majors
Degrees
Finance Analyst
Unfortunately we don’t have enough data for this section.
Real Finance Analyst Salaries
Job Title
|
Company
|
Location
|
Start Date
|
Salary
|
|---|---|---|---|---|
| Financial Analyst | Otter Media Holdings, LLC | Santa Monica, CA | Aug 22, 2015 | $300,000 |
| Financial Analyst | Federal Reserve Bank of New York | New York, NY | Jan 12, 2015 | $260,000 |
| Financial Analyst | Glencore Ltd. | Stamford, CT | Sep 15, 2015 | $250,000 |
| Financial Analyst | Tiger Veda Management, LLC | New York, NY | Feb 10, 2016 | $225,000 |
| Financial Analyst | Coltrane Asset Management LP | New York, NY | Oct 09, 2016 | $225,000 |
| Financial Analyst | Littlejohn & Co. LLC | Greenwich, CT | May 01, 2015 | $220,000 |
| Financial Analyst | Bruce S. Brickman &Amp; Associates, Inc. | New York, NY | Feb 15, 2016 | $205,000 |
| Financial Analyst | Investment Placement Group | San Diego, CA | Sep 30, 2015 | $200,000 |
| Financial Analyst | Consulta USA Inc. | New York, NY | Oct 02, 2015 | $200,000 |
| Financial Analyst | Bronson Point Management LLC | Fairfield, CT | Apr 02, 2015 | $200,000 |
| Financial Analyst | Fir Tree Partners Inc. | New York, NY | Sep 02, 2015 | $200,000 |
| Financial Analyst | Blazeridge, LLC | New York, NY | May 30, 2016 | $200,000 |
| Financial Analyst | Sanoor Capital Management LP | Greenwich, CT | Dec 21, 2015 | $200,000 |
| Financial Analyst | Gotham Consulting Partners LLC | New York, NY | Feb 05, 2016 | $180,000 |
| Financial Analyst | East West Bank | Pasadena, CA | Dec 23, 2016 | $78,915 |
| Financial Analyst | A&J Capital Investment, Inc. | Alhambra, CA | Mar 11, 2016 | $78,874 |
| Financial Analyst | Summit Mortgage Bankers, Inc. | Alhambra, CA | Aug 17, 2016 | $78,874 |
| Financial Analyst | Corban Group Services, LLC | Norwalk, CA | Jun 17, 2016 | $78,874 |
| Financial Analyst | Victoria Financial Corp. | San Gabriel, CA | Mar 23, 2016 | $78,874 |
| Financial Analyst | Legalzoom | Glendale, CA | Aug 31, 2016 | $78,874 |
| Financial Analyst | Tongfang Global Inc. | Diamond Bar, CA | Dec 27, 2016 | $78,874 |
| Financial Analyst | King Hood Inc. | Los Angeles, CA | Jan 09, 2016 | $78,874 |
| Financial Analyst | BRC Real Estate Corporation | Highlands Ranch, CO | Aug 11, 2015 | $65,166 |
| Financial Analyst | 48 Factoring | Wayne, PA | Mar 28, 2016 | $65,166 |
| Financial Analyst | Geo Investing LLC | Skippack, PA | Mar 25, 2016 | $65,166 |
| Financial Analyst | Ibidsmart Inc. | Trevose, PA | Feb 29, 2016 | $65,166 |
| Financial Analyst | U.S. Bank National Association | Bloomington, MN | Jul 09, 2016 | $65,100 |
| Financial Analyst | It America Inc. | Carson City, NV | Aug 25, 2015 | $65,100 |
| Financial Analyst | Portocork America, Inc. | Napa, CA | Aug 16, 2016 | $65,062 |
| Financial Analyst II | Rackspace Us, Inc. | San Antonio, TX | Oct 01, 2015 | $65,000 |
No Results
To get more results, try adjusting your search by changing your filters.
Top Skills for A Finance Analyst
Show More
Top Finance Analyst Skills
- Monthly Financial Statements
- Asset
- Financial Analysis
- Prepare monthly financial statements and perform monthly data upload to the company's databases.
- Supervised financial activities at Wealth and Assets Management of line of business (LOB).
- Provided financial analysis on major supplier contract negotiations, maximizing volume rebate and performance incentives.
- Researched general ledger accounts to identify discrepancies between auditing reports and other internal and external records.
- Build continuous relationships with external auditors, government officials, as well as internal partners on ongoing projects and assignments.
Top Finance Analyst Employers
Show More
Finance Analyst Videos
Career Advice on becoming a Management Accountant by Matthew R (Full Version)