You must have read the term Financial Analyst in business newspapers like the wall street journal or in magazines like the economist. Let us talk about who a financial analyst is. What are the requirements to become a financial analyst? What are the duties of this person? How important is this person to the company? Let us discuss.
A Financial Analyst is a person who analyzes financial data of companies, studies their businesses, and gives an opinion on their investment potential. They give ratings on the company's equity such as "buy", "sell", "market perform", "overweight", "hold", etc. They are also called as securities analysts, equity analysts, research analysts, or investment analysts according to the roles they perform in their respective organizations.
What education is required to be a FA?
In the USA, the CFA (Chartered Financial Analyst) qualification is required. An MBA degree or a degree in Chartered Accountancy could also be required for the financial analyst position. In other parts of the world, the financial analyst may or may not have the CFA qualification. He/She may have the regional qualification required.
Which skills are required to be a FA?
Good analytical skills are very much required to be a financial analyst. The person must be able to analyze with all factors in mind. He or she must be an expert in the subjects of math and statistics. Computer skills are very essential in the making of a good FA. The FA must know the use of spreadsheets, presentations, accounting software, internet, etc. Last but not the least - good communication and people skills are very important. Teamwork plays a dominant part in any analyst's work.