An equity analyst studies a company’s financial data and trends to predict future financial needs, writes reports on finances, and assigns financial ratings. They work in various industries and must possess analytical, mathematical, computer, and communication skills. A Master of Finance or Business Administration degree is typically required, and internships can provide an advantage.
An equity analyst is a person who analyzes a company’s financial data and trends. An equity or financial analyst studies the public records of companies to predict the future financial needs of the company. The analyst writes reports on the company’s finances and describes the investment potential of the company by assigning financial ratings such as buy, sell, hold, etc. The capital analyst is also responsible for analyzing the budget and creating a plan to get out of debt, if the company finds itself in such a financial situation.
The daily tasks of a financial analyst are varied, from studying and researching to writing and drafting documents and making presentations. In the past, the analyst obtained most of the company’s financial information from meetings with managers, but due to new fair disclosure laws, the analyst must obtain the data through public records, annual reports, and financial information. available online. Also, public conference calls are a means to get the data.
An equity analyst works in securities brokerages, analysts or firms, securities or securities investment markets, banks, insurance companies, mutual or pension funds and other businesses. When a financial analyst works at a lending company, the duties are expanded to include credit risk investigation. An equity analyst must be observant and focused on trends. He or she should pay attention to everything related to the business, not just the financial sector, because trends in any division of the business will have an impact on the finances of that business.
The tools a person in this position works with include statistical software, calculators, and spreadsheets. Analysts must possess strong analytical, mathematical, computer, and communication skills. They must be able to work individually or in a team. With budgets or financial records, an equity analyst often does the research and analysis alone. When the projects of large companies are affected by a financial situation, such as mergers or acquisitions, the financial analyst will work with other departments of the company, interpreting the financial consequences so that the best decision can be made.
An equity analyst typically has a Master of Finance (MSF) or Master of Business Administration (MBA) degree from postgraduate training. Many analysts are also consultants or accountants. To become an equity analyst, one must obtain the proper qualifications and experience. Internships at companies in the financial industry are good ways to start. Showing strong analytical and communication skills can provide an advantage over other candidates.
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