To become an equity research analyst, one needs post-secondary education, related work experience, research skills, and to complete the job interview process. Attention to detail, data manipulation, and management are important skills. A college degree is preferred, and mid-career positions are available. Additional formal training is required for advancement.
There are four steps required to become an equity research analyst: post-secondary training, related work experience, research skills, and completing the job interview process. An equity research analyst spends his time reviewing data on financial transactions involving equity in financial assets or instruments. This job is very similar to financial, securities or investment analysts.
People who have an analytical thought process, enjoy working independently, and are comfortable exploring multiple scenarios find the most satisfaction in this type of work. The most important skill for an equity research analyst is data manipulation and management. Attention to detail, discipline and focus are essential for anyone wanting to work as an equity research analyst.
The first requirement to become an equity research analyst is to complete a post-secondary education program. While many companies will accept a college degree in accounting for an entry-level analyst assistant position, the vast majority of investment firms and banks prefer a college degree for their analysts. The degree can be in accounting, mathematics, business, statistics or a related field.
Related work experience includes financial analyst, statistician, finance or accounting director. All of these jobs use software analysis programs and statistical programs. Analyst positions are generally mid-career, with limited opportunities available to recent graduates.
Research skills are essential in this role. These skills are often taught through courses available in humanities or information studies programs. Optimal research skills provide the appropriate methodology for rapid data retrieval, correct citation of sources, and the ability to find the best resources for a specific idea.
When applying for a job to become an equity research analyst, review your resume and cover letter, double check for grammar or spelling errors. It is becoming more and more common for equity research firms to require a credit and criminal records check as part of the application process. Keep this in mind when applying.
During the job interview process, most employers have a standard list of questions for anyone looking to become an equity research analyst and looking for concise and complete answers. Remember that everything you say will be noted and reviewed. Think about your answers, stay calm and be sure to answer the question that was asked.
To advance your career to a managerial or supervisory level, additional formal training is usually required. This usually includes a master’s degree in statistics or finance. Many people remain analysts for their entire careers, expanding their role in finance or branching out into other related industries. Options for an equity research analyst include accounting analysts, data management or working for a software company.
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