You’ll need an on-campus or online bachelors in finance, business, economics or accounting to begin a career as a financial analyst. In fact, a master’s degree in one of these fields can really help advance your career.
Understanding computer math models is also a skill you’ll want to acquire.
Understanding computer math models is also a skill you’ll want to acquire.
Related Financial Analyst Programs
What does a financial analyst do?
Financial analysts are also called securities analysts, financial research analysts, and investment analysts. Their main function is to provide guidance, direction and analysis to assist businesses and individuals in making buy or sell investment decisions.
Part of their work is to study company financial statements like the balance sheet, cash flow and income statements, etc. Using these and other factors such as commodities and stock prices, expenses, tax rates and revenues, the financial research analyst tries to determine the company’s value and future prospects.
In general, financial analysts can work for a buy side or a sell side:
• The buy side includes institutional investors, money managers, etc., who have a lot of money to invest. On this side the financial analyst develops investment strategies.
• The sell side includes securities dealers who sell stocks, bonds and other investments. The analysts help them determine the worth of their investment vehicles.
What kind of education does a financial analyst need?
A bachelor degree in finance, business, accounting, statistics and economics is essential to work in this field.
Accounting policies and procedures, budgeting, accepted financial analysis methods, statistics and economics has to be mastered.
In addition to a masters degree in a related area, there are some common certifications you may want to consider acquiring. For example, a financial analyst can earn a Chartered Financial Analyst (CFA) designation. Passing the rigorous exams for this and other programs require hundreds of hours of self-study.
How much does a financial analyst earn?
Bureau of Labor Statistics suggest that median annual salaries for financial analysts are at around $73,150. This excludes bonuses.
Where can a financial analyst work?
Financial analysts work for insurance companies, banks, investment houses, brokerages, mutual funds, hedge funds, securities firms and media that follow and write about the financial world.