The role of a financial analyst is one of the most sought-after roles for college graduates in the finance field. Financial analysts can work in many different industries and the role can further expand into future opportunities within a company.
This field is highly competitive and calls for extensive knowledge on finance methodologies and principles to succeed at the job. Read on to learn more about what the role of a financial analyst entails.
What Is A Financial Analyst?
Financial analysts research the economy and possible events that may occur that affect investing decisions and future projections within a company or industry.
With this research, analysts often develop a plan to buy or sell a company’s stock based on their analysis of the market and future projections. Analysts may also work in other sectors that are separate from buying and selling stocks such as analyzing marketing efforts and their return on investment.
To break into finance, incoming finance majors must possess technical skills and soft skills to succeed in your finance career.
What To Expect On The Job
Financial analysts must be in-sync with the news and constantly update their projections for specific industries or companies as new information is published. Analysts read major news publications such as The New York Times, The Wall Street Journal, and The Economist as well as other financial websites.
Analysts spend the majority of their time on spreadsheet and presentation programs to provide reports to senior officers both during and after the work day. These reports normally consist of forecasting, trends analysis, risk analysis, and a course of action. Analysts must also be aware of the financial regulations and abide by these regulations to ensure the company is not engaging in unregulated activities.
Analyst Job Outlook
The role of a financial analyst may seem complex, but the compensation is well-worth the number of late nights preparing forecasts and reading about the economy.
The Bureau of Labor Statistics states that the median salary for analysts in 2018 was $85,6601; well above the national average income in the United States. The role of a financial analyst continues to grow at a constant 6% increase annually making more positions available for finance majors post-college.
The financial analyst field is highly competitive with hundreds of people competing for the same lucrative opportunity. The work is difficult, and analysts have a large amount of responsibility at a company due to their analyses directly impacting the final course of action for a company to invest in a certain stock or fund.
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Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Analysts: https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm