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Financial Analyst - 7-Jan-2014
To simply say, a Financial Analyst (FA) is solely responsible for carrying out research and analysis of financial information for making crucial decisions regarding the future investments of an enterprise.
Insurance companies, IT, and Bank are some sector where financial analysts are of great demand. FAs work with professionals within the company and suggest a course of action for purchasing or selling a companys stock depending upon its current and estimated strength.
Eligibility: Minimum requirement is a bachelors degree in preferably a related field such as accounting, economics, finance, or statistics. Many organizations prefer either a Master of Business Administration (MBA) or a masters degree in finance.
Candidates with a bachelor degree are usually hired as junior analysts and master degree holders are often hired as senior analysts.
However, candidates with bachelors degree in engineering, biology and even physics are also eligible.
Skills required: An analysts need 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.
FA need to posses skills like analytical, decision-making, insight, mathematical, technical and sound interpersonal and communication skills.
Certification: Although a certification is not mandatory, certifications add value and are preferred by some potential employers.
Financial analysts can become a Chartered Financial Analyst (CFA), sponsored by the CFA Institute.
For this, the applicants must hold a bachelors degree and at least four years of related work experience, and then clear three exams which might requires a great effort and hard work.
Responsibilities: Financial analysts are supposed to guide investment opportunities and making investment decisions any organizations.
FAs are assisted by analysts and investment analysts. Here are some major tasks:
- Evaluate present financial status and recommend proper action
- Develop financial reports using computer applications
- Study existent and emerging economic and business trends
- Determine investment risks
- Carry out detailed study of a companys financial statements
- Meet investors to explain recommendations
Scope for Financial Analysts are great in banking sector and big enterprises.
