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In the financial services industry, one of the most coveted careers is
that of the financial analyst. Financial analysts can work in both junior
and senior capacities within a firm and it is a niche that often leads to
other career opportunities. The financial services industry is
competitive, and it can be tough to break into the analyst field, but
there are some preparations you can make to position yourself for this
career. If you're interested in a career as a financial analyst, read on to
find out what you can do to groom yourself for the job.
What Is a Financial Analyst?
Becoming A Financial Analyst
How to Become a Cfa? Investment Banking Salaries Certified Financial Analyst
Description of a Financial Analyst Cfa Requirements
A A A |
By Christina Granville
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What Is a Financial Analyst?
A financial analyst researches macroeconomic and microeconomic
conditions along with company fundamentals to make business, sector
and industry recommendations. They also often recommend a course
of action, such as to buy or sell a company's stock based upon its
overall current and predicted strength. An analyst must be aware of
current developments in the field in which he or she specializes as
well as in preparing financial models to predict future economic
conditions for any number of variables.
Background of Financial Analysts
If you are still an undergraduate student who is considering a career as
a financial analyst, it is best to take courses in business, economics,
accounting and math. Other majors that are looked upon favorably
include computer sciences, biology, physics and even engineering.
Many of the junior analysts hired by firms have these backgrounds,
while MBA graduates are often hired as senior analysts right out of
business school.
If you are not an MBA graduate student or an economics major as an
undergraduate, you may want to consider studying for the Series 7 and
Series 63 exams or participating in the Chartered Financial Analyst
(CFA
) Program. Keep in mind that participating in these exams will

require sponsorship from a FINRA member firm or a self-regulatory
organization.
While the CFA exam is highly technical, the Series 7 and 63 exams are
other ways to demonstrate a basic familiarity with investment terms
and accounting practices. If you look at a sample CFA exam and it
seems overwhelming, start with practicing for the Series 7 and 63
exams and then work your way up to the CFA exam or begin to
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exams and then work your way up to the CFA exam or begin to
interview for junior analyst positions after passing those Series exams
or one of the other exams that are highly regarded by the financial
services industry. Many institutions also have training programs for
those candidates who show promise in the field.
Types of Analyst Positions
Financial analysts tend to specialize based on the type of institution
they work for. Analysts are hired by banks, buy- and sell-side
investment firms, insurance companies and investment banks. Of
these specialties, three major categories of analysts are those that
work for 'sell-side' investment firms, those that work for 'buy-side'
investment firms and those that work for investment banks.
Within the investment
industry, most analysts tend to
work either for buy-side
investment firms, where they
research stocks for an in-house
fund, or sell-side firms that
write research reports for buy-
side firms. Buy-side firms are
investment houses that manage
their own funds. In these
companies, analysts research
companies as they look for
stocks to add to an investment fund. They also track the stocks that are
in a fund's portfolio in order to determine when or if the fund's
position in that stock should be sold.
At a sell-side firm, analysts evaluate and compare the quality of
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At a sell-side firm, analysts evaluate and compare the quality of
securities in a given sector or industry. Based on this analysis, the
analysts then make reports with certain recommendations such as:
buy, sell, strong buy, strong sell or hold. These recommendations carry
a great deal of weight in the investment industry including analysts
working within buy-side firms.
Even within these specialties, there are subspecialties such as analysts
who specialize in equities and those that specialize in analyzing fixed-
income instruments. Many analysts also specialize even further within
a specific sector or industry. An analyst may specialize in energy or
technology, for example.
Analysts in investment banking firms, however, differ from analysts in
buy- and sell-side firms as they often play a role in determining
whether or not certain deals are feasible based on the fundamentals of
the companies involved in a deal. This type of analysis can include
IPOs or mergers and acquisitions. Analysts assess current financial
conditions as well as rely heavily on modeling and forecasting to make
recommendations to senior partners as to whether or not a certain
merger is appropriate for that investment bank's client or whether
another client of the investment bank should invest venture capital in
a particular company.
What to Expect on the Job
Financial analysts need to remain vigilant about gathering information
on the macroeconomy as well as information about specific companies
and the fundamental microeconomics of their balance sheets. In order
to stay on top of financial news, analysts will need to do a lot of
reading on their own time. Analysts tend to read publications such as
The Wall Street Journal, The Financial Times and The Economist as
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The Wall Street Journal, The Financial Times and The Economist as
well as financial websites.
Being an analyst also often tends to involve a significant amount of
travel. Some analysts travel to companies to get a first-hand look at
company operations on the ground level. Analysts also frequently
attend conferences with colleagues who share the same specialty as
they do.
When in the office, analysts learn to be proficient with spreadsheets,
relational databases and statistical and graphics packages in order to
develop recommendations for senior management and to develop
detailed presentations and financial reports that include forecasting,
cost benefit analysis, trending and results analysis. Analysts also
interpret financial transactions and must verify documents for their
compliance with government regulations.
Opportunities for Advancement
As interoffice protocol goes, analysts interact with each other as
colleagues while they tend to report to a portfolio manager or other
senior in management. A junior analyst may work his or her way up to
a senior analyst in a period of three to five years. For senior analysts
who continue to look for career advancement, there is the potential to
become a portfolio manager, a partner in an investment bank or senior
management in a retail bank or an insurance company. Some analysts
go on to become investment advisors or financial consultants.
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Tips for Success
Tips for Success
The most successful junior analysts are ones that develop proficiency
in the use of spreadsheets, databases, PowerPoint presentations and
learn other software applications. Most successful senior analysts,
however, are those who not only put in long hours, but also develop
interpersonal relationships with superiors and mentor other junior
analysts. Analysts that are promoted also learn to develop
communication and people skills by crafting written and oral
presentations that impress senior management.
The Bottom Line
While a career as a financial analyst requires preparation and hard
work, it also has the potential to deliver not just financial rewards but
the genuine satisfaction that comes from being an integral part of the
business landscape.
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hix1985 4 years ago
this is a really good article. I'm a freshmen at a community college going in to int. business, I really want to be a
finance analyst. The school doesn't have finance as a degree.I was going to get my *** degree in int business then
transfer to a four year college. Should I change my degree to math or engineering? Then take financing at the new
school? Thanks

69
Reply
Tony Myles 6 months ago hix1985
You can but I would tell you to think about a Economics degree. It gives you a broader understanding of the
economy and micro and macroeconomic which you will need to understand to be a Financial Analyst.

7
Human Rights > Religious Right 5 months ago Tony Myles
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Reply
You really answered a 4 year old post? Lol

27
Reply
Wilson 3 months ago Human Rights > Religious Right
this dudes probably graduated from college already

15
Reply
Mattkunderwood 3 years ago
This is inline with my personal plan, and is a good general outline for someone who is looking to move into an analyst
route. I currently work at a FINRA member organization (which is currently the largest investment management
firm/mutual fund house), hold my Series 7 and 63, am completing my MBA in Finance and Management Information
Systems at the Eller College of Management at the University of Arizona, and am looking to procure the CPA
designation (and possibly also CFP if I have time), and am very interested in financial analysis and fund management
as well. I wil attempt to give a little extra insight if possible.@volsfan1002 for undergrad, you would THINK that a BS
Finance would be your only option....this is not necessarily true. Did you know that the majority of Harvard Business
School MBAs do not have their undergrad in Business Admin, Econ, Finance, or accounting? Instead try History,
Humanities, Sociology, etc...The common thread is that they are the most brilliant History, Humanities, Sociology
majors. It is not so much about your major, but your GMAT scores, letters of rec, your transferrable skills and work
experience, and how much of an innovative thinker you are. I would say that the MBA is definitely a plus, expecially
from a top 10 University. But, not having that MBA does not necessarily mean you can't get your CPA, or go into an
analyst position...but I do find they are far more likely to consider you, because the majority of candidates DO hold
one.

11
Reply
Owusua Ernestina 2 years ago Mattkunderwood
hi MATT WELL DONE U KNOW EVERYTHING IS A MATTER OF TIME AND WITHIN A TWINKLE OF AN
HOUR THAT TIME WILL BE ACHIEVED THUS ,U GETTING AN MBA AND OTHERS BUT CAN U TELL ME
STH SMALL ABOUT UR WORK AT FINRA.I REALLY ADMIRE THAT PLACE

Reply
Owusua Ernestina 2 years ago Owusua Ernestina
CAN WE BE FRIENDS

29
Michael G Souliman 2 years ago
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Hi there , i recently graduated holding a bsc in business adminstration ,major financial management. My dream job is
to become a financial analyst and iam willing to start my cfa very soon the problem is here in Egypt there is no such
a thing called junior analyst , and for the position of FA they need a lot of experience , how should i start ?! In a bank
as a teller or sth or as a junior accountant in one of the big four ?! Thanks

9
Reply
Jim 2 years ago Michael G Souliman
Hey Michael. Am no expert but I am in a country that's much similar to yours (Kenya) where emerging trends
in the financial sector are in the early stages. I think you should try and internship position at an investment
bank/stock brokerage with an investment arm/the financial services part of a bank. That might be fairly easier
to get. Goodl uck.

1
Reply
Caiomhe 4 months ago Jim
Hi Jim,
I am also a Finance student at the University of Nairobi and csia student too. I'm very interested in
becoming a financial analyst but would like to know the potential for growth of this industry in a frontier
market like ours.

Reply
Brian 7 months ago Michael G Souliman
I would recommend not starting as a teller. Try getting your way into corporate finance and learn advanced
excel skills and study for your CFA from there your chances are way better and the pay is way better as well.

Reply
Mary Jane Contigno a year ago
Since I was a toddler, Mathematics has been my first love and will forever be. Growing up now, I project myself as a
Mathematics professor but lately, my interest has suddenly changed. I imagine myself as a career woman wearing a
business suit, sitting in an executive chair, facing a computer, analyzing the current trends and Financial status of
the world's economy, especially the Philippine Market after having surpassed the CFA Board Examination. In short, I
want to be a Financial Analyst in the near future. Hopefully, this simple dream will come true.

6
Anthony Tacda 4 months ago Mary Jane Contigno
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Taking Accountancy or financial management is a good start Jane. It is more analytical rather than
mathematical. Once you graduated Accountancy, maybe you could take the CPA Board and start you way up
in a corporate ladder in Analyst/Accountant capacity...it will be a long journey.

Reply
rhydhi 2 years ago
i am in the 11th grade and aspire to be a financial analyst...could you please guide me whether to take up B.Com.
Hons. or shall i pursue economics as a subject for the same?
This article is the first piece of information that has really enlightened me about the work of a financial analyst...

5
Reply
Chio1983 a year ago rhydhi
Hi Rhydhi, I'm very impressed that you are actively pursuing your passion, keep it up!! in regards to your
question, my advice will be to pursue Econ, and if possible do some internship work related to financial
analyst with your local banks, or financial institution, investment comp, insurance comp.
give you a practical sense of the field and may help direct your future choices. I hope this helps. Good luck in
your future endeavors. Guys feel free to chip in....

1
Reply
rhydhi a year ago Chio1983
thank you so much.i am in the 12th grade now. My inclination seems to be more towards economics
and mathematics now, as compared to accountancy. Do you think it shall pose a challenge as far as
becoming a financial analyst is concerned?

Reply
Gustavo Dominguez a year ago rhydhi
Same here, 12th grade. I can't decide between getting a Finance or Econ major

1
RobKimball 7 months ago Gustavo Dominguez
Assuming that the two of you have started college at this point, you've probably already
declared one of the two majors each of you were considering. Personally, I've always
thought that the Accounting major is akin to a trade school degree, whereas
Economics is all about applied theory. You can always make up for missing finance
knowledge with a professional certification (e.g. CFA), but you'll find that having an
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Econ foundation will always be indispensable.

1
Reply
Avadhut a year ago
Hi,
This post clears basics of becoming a financial analyst.

3
Reply
maurice adams 2 years ago
This the most useful information I have come across about becoming a financail analyst, and I have confirmed that
this is the career path for me, thank you very much .

3
Reply
preeti_29oct 4 years ago
This article proved to be very useful as it gave insights about the job, skills required to pusue carrier being financial
analyst. thank u vey much.

2
Reply
snwmn 17 days ago
I want to become a financial analyst. I am a UK student and now going to the second year of Bsc maths at university
of Birmingham which is a 3 year course. I am not sure if I should do the MSc of mathematical finance which in its
description says that it trains you to become a financial analyst. Do I need a masters to get this role?
I have absolutely no experience at all mainly because I don't know which companies to apply to. Also what types of
companies in the UK hire financial analysts? Such as well respected ones?

Reply
Albert Jewijati 18 days ago
i'm an undergraduate. i will declare my majors in economics and finance next year. this summer i'm going to join a
brokerage company ( NBK ) for a training and hopefully gain some experience. i need to know what else am i
supposed to do to gain the basics of being a financial analyst. i am very interested.

diyara 2 months ago
I'm pursuing msc in finance and currently doing internship with a financial advisory firm. The problem is they are
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pushing me into sales and I'm not a sales person. I like doing research and want to learn how I can become an
analyst. Also, is it necessary to do sales to became a financial analyst?
To know about markets I'm making a daily stock report in excel of few selected stocks and analyzing their trend.
Whatelse can I do to gain more knowledge about this industry? Any help would be appreciated.

Reply
Tamama99 3 months ago
I am a college student
I am going to uni next year
I think I would choose finance be my major is it a good major for me if I aim to be a Financial Analyst in the future
What do I need to do be4 applying the job in some investment bank?
Is it just do the CFA programme after uni?
Thx

Reply
RISHI SIVAKUMAR 5 months ago
Hey, yes i know im joining an old conversation.. But im very much interested in the field of financial analyst. Basically
im an ACCA student currently in the professional levels. (sitting for P1 and P2 this June) im planning to do CISI as
soon as complete ACCA and then start wit CFA. Im 20 and my lecturers advised me to join an audit firm and
continue for a year and then try applying for a financial service company to pursue my goal since i have no exposure
and experience in the corporate field therefore joining an audit firm will help me get some basic exposure. Can
anyone pls guide me on this.. shall i join an audit firm and continue working there for a year? or should i straight away
join a financial service company? Thanks in advance.. cheers :)

Reply
william karithi mwika 9 months ago
doing bachelor of commerce - Finance, wish to work towards a financial analyst path. what should i work on so that
my dream is achieved

Reply
Ceyhun Yldz 10 months ago
This is a clear, and well-developed article. It really illuminated my road to financial career as an undergraduate
"International Trade" freshman. You are the best Christina.

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Narottam Jha 10 months ago
Hi
I Have done MBA-Finance and working as a Finance Executive in retail my work profile is concern with Accounts
Receivable and sales Data Analysis.
I am not much comfortable and I wanna work in Core finance as a Financial Analyst etc. Can you please guide how
can I move from Current line to core finance and what should I do? what line would be the best..???plz reply

Reply
lolo1990 11 months ago
i have some savings, I am just going to do it myself

Reply
cholo calimbahin a year ago
Hi i am a 1st year college in the Philippines and i'm taking up "management accounting". Does this course may lead
me to a cfa? I really really want to be a financial analyst. Guys I need your reply please. Especially for those who have
background in this industry. Thank you very much.

Reply
mmpya a year ago
This is a very good article. I'm also interested in a financial analyst position. I did finance as my undergraduate major
and have an MBA unfortunately I lack experience and have been trying to get internships but have been
unsuccessful. It seems most internship programs prefer current students. Could you advice me on what I could to
break into this field

Reply
shimero a year ago
I enjoyed reading this article as well...and I'm very interested in becoming a financial analyst...only education I have is
doing business subject in high school which was 7 years a go...what I do know is that I love math anything that as to
do with numbers and re-searching, things like this excites me...but right now I'm not sure where to start

Ms.Saeed a year ago
Hello Everyone.
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The article is very informative and gives all the minute details of the route to be a financial analyst. But unfortunately i
came across this article quite late, I have a bachelors degree in Business administration and Masters in Business
Economics my major is Global Business and Finance. I have been applying to internships and entry level jobs for
finance but all i get is rejection. Currently i am working in a social service government agency but my dream job is
financial analyst and my degree work is in finance as well. Can any one please guide me what should I do in order to
achieve my aim.
Thank You

Reply
OTM hedgefund a year ago
Hi, this is very insightful, just about the gist that puts things into perspective. I'm currently in the process of
completing my undergrad in BCom Accounting (the CA stream), with the prospect of joining the banking sector,
however, I'm considering the CFA route instead and would like to know if its sound to pursue it with only my
undergrad degree or Hons.?

Reply
Chicho Sycho King a year ago
Sweet staff'' Guap for Guap...

Reply
Qizilbash a year ago
Thank you for this helpful information.

Reply
Ifmglobal a year ago
I really enjoyed this post. You describe this topic very well. I really enjoy reading your blog and I will definitely
bookmark it! Keep up the interesting posts!

Reply
Corrine a year ago
Florida State University is a good school to go to if you want to become a financial analyst. I would recommend a
MBA (Masters of Business) degree.

le hai dang 2 years ago
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mhamze1 4 years ago
I appreciate this article as an MBA student about ready to graduate.

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