How Do I Become a Financial Analyst?

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A financial analyst researches current market trends, and utilizes several models to successfully foretell the best moments to sell investments or invest, in order to ensure that profit is maximized and company risks minimized. Economic models may include:

•Specialized financial models
•Generic model
•Global assumption model
•Financial model without shares
•Simulation based financial models
•Exchange rate model
•Macroeconomic financial models
•Financial model with shares
•Deterministic financial models
•Corporate financial models
•Industry financial models

Financial analysts engage in several types of research related projects. They peruse financial statements while evaluating market trends, which include expenses, costs, tax rates, and sales. From this analysis, they will generate records that will show projected profits, ways to reduce losses, or opportunities for growth. Financial analysts play a vital role in figuring out a company’s current worth and projecting its future revenues. They may also be responsible for administrating the compliance with Securities & Exchange Commission regulations.

Educational Requirements

If you want to become a financial analyst, you should make plans to take lots of business classes, particularly accounting and economics. You should also be well prepared to take higher-level mathematics classes too. Well known majors for financial analysts are mathematics, engineering, computer science, accounting and business. When you are armed with a Bachelor’s Degree in one of the aforementioned fields, you can count on being employed as a junior financial analyst. Many financial analysts will strive to earn a Master’s in Business Administration (MBA) degree, which will position them to fill senior analyst job positions.

Additional Skills Required

Financial analysts are typically called upon to utilize their skills in the course of doing their job. In addition to having research and financial skills, technology is also known to play a key role in carrying out the job. You will need to know how to use programs such as Microsoft Office in order to create spreadsheets, and other statistical software to spot trends, develop forecasts, and analyze financial data.

Non-tangible skills that are required include:

•Have the capacity to take initiatives
•Be flexible
•Analytical and decision making
•Influence
•Capacity to achieve results
•Communication
•Teamwork & collaboration

Financial Analyst Organizations

CFA Institute is the most well known organization for financial analysts; this organization provides graduate level curriculum that offers a strong base for real-world portfolio management, investment analysis, and practical information that is required to become a successful financial analyst.

Financial Analyst Pay

According to the Bureau of Labor Statistics (BLS), as of May 2012, the median salary for financial analysts was $76,950 (at $37.00 per hour). This career is certainly a well paying one.

Registering with SEC

Financial analysts may be required to register with either their State Securities Agency or the Securities Exchange Commission (SEC) where they have their principal place of business. Most times, the brokerage or firm where you work will direct you through the processes of becoming a registered or certified financial analyst. Normally, if you manage a hundred million dollars or higher in client assets, you will need to register with SEC, if not; you will need to register with state securities agency.

Waste no time in pursuing a truly promising career. With a little bit of education, your career can go a long way.