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How to Become a Financial Analyst

Scholasticus K
A financial analysts job involves interpreting volumes of data and numbers trying to analyze and interpret earning statements and balance sheets of financial institutions. Here are the profession and educational qualifications required to become a financial analyst.
The role of securities markets and investment banking is drastically becoming more dynamic and important, with each passing fiscal year. Apart from increasing stock and securities trading, compliance and risk management are 2 factors that play a significant role in financial markets. The need for more financial analysts and financial advisers is being felt.

Financial Analyst Information

Any aspiring individual to wants to know how to become a financial analyst will benefit from understanding the following three facets of a financial analysts' profession. Here, a financial analysts' role in the business world, the educational requirements, and his/her potential career path, has been discussed briefly.

Job Description

The financial analyst job description, is quite broad and you will notice that there are several variable and conflicting definitions.
In simple words, financial analysts principally advise entrepreneurs, investors, and businessmen when to buy/sell, why to buy/sell, what to buy/sell, and, anything that relates to financial management and transactions. It does not mean that financial analysts give out such advice on the basis of sheer instinct; mammoth research is conducted to back it up.
It is a common myth that analysts deal only with securities and fiscal markets. Such analysts can potentially advise any entrepreneur. Practically, analysts also advise production industries, service and software industries, banks, media and entertainment industries, and, potentially, any business or non-business organization.
To sum up the total potential duties of a financial analyst, we put it into the following points.
  • Research and advise upon stock market and securities market orations (the foremost duties of a financial analyst)
  • Advise upon taxation and compliance
  • Advise about national and international economy
  • Keep up with the inventory and production
  • Study and analyze all incomes and expenditures of the company, and also execute related financial planning
  • Manage all financial transactions of the company including credit, debt, and insurance
  • Advise about new potential revenue options
  • Raise adhered capital requirements for businesses and companies
  • These analysts have the responsibility of purchase and sale of securities, debts, and instruments
Thus an analyst is any person who possesses a good command over the financial and economic matters of the business world.


The analyst requirements are not difficult. Basic qualifications include knowledge about accountancy, taxation, economics, and statistics. The qualification for a financial analyst is the Chartered Financial Analyst charter holding, offered by the CFA institute. Charter MSF (Master of Finance) or MBA (Master of Business Administration) can also do good.
Some other qualifications also include, CPA (Certified Public Accountants), CIA (Certified Internal Auditors), CMA (Certified Management Accountants) and ABA (Accredited Business Accountants).

Career Prospects

There are a wide number of career opportunities for financial analysts due to the fact that there is always a need for good and reliable analysts. Financial analysts are usually employed by different companies in their finance departments. Financial institutions and banks are the largest employers of financial analysts.
Analysts employed or contracted by financial organizations are divided into two types, namely buy side and sell side analysts, who decide the purchase and sale of financial securities. Financial analysts also, often, work freelance and as consultants. Some of them are also personally hired by investors and businessmen.
A financial analyst has to enjoy number crunching and interpreting from figures and large numerical data. Also he/she should be well-informed about the economy and the markets in order to be abreast of all the financial developments around the world.