Equity Research Analyst Career Facts
A person who works in the field of equity analysis is one who follows the particular companies, industries and sectors to gain financial information. They look at financial reports and do interviews with professions in a particular industry. Typically, they work for investment firms, banks or other financially oriented outfits.
There are essentially two types of research analysts, those who work for the buy-side, and those who work for hte sell-side. The buy-side refers to companies who want to invest. The sell-side analysts work for places which own the money such as banks and and firms who own stocks and and other investments. They often work long hours, then conduct their research in the evenings. Some companies employ equity research analyst to determine whether a company is worth investing in or whether they might be a risk. In addition to looking at a particular company, they study the entire industry to get a better understanding of how companies fit into the stratum.
Besides determining a company's worth, they might also try to figure out what their potential value is. They will examine the costs, tax information, sales sheets and financial statements as well as meet with members of management to get a clear picture of a company and its value. They will investigate the corporations whose stocks a company follows as well, and they look out for concerns the company has in potential investments.
Ultimately, the research analyst need to have good written skills and computer skills. These days, analysts use software programs that compile statistical information. An analyst will use these to write reports and create presentations. They may also assist in a merger or acquisition, as their knowledge and analyses is needed to determine the costs and benefits of such activities. Tjose ananlysts with good writing skills have an edge over other hopefuls.
Requirements for Equity Research Analyst
An equity research analyst should have a bachelor's degree in a business , economics, statistics, finance or accounting. Besides this, they should have a strong background in mathematics and in accounting. Often, no specific degree is required for hte position but strong numerical skills are imperative. An equity research analyst often has great analytical ability as well as good communication skills, as the research analyst will need to speak with clients. Equity research analysts need to have a firm grasp of computer software applications, especially spreadsheet and database skills.
Most financial analysts have a gradate-level degree such as a Master of Science in Finance or a Master of Business Administration. Some are also certified accountants with designations of CA, CGA or CCA. analysts who work on the buy side are less likely to need accounting certification. If they do obtain licenses, they need to renew them with the new firm.
Some financial analyst go on to obtain their CMA certification, which stands for Certified Management Accountant. Those who do so may consider becoming a corporate financial analyst. Some research analysts obtain their MBAs and become investment bankers. Otherwise, they may move up in their position to become associates or even eventually becoming a senior research analyst or on to work as a CFA or Chartered Financial Analyst. Those who progress can expect to earn significant bonuses in their analyst roles.
Wages for an Equity Research Analyst
It's estimated that in a position such as this, a worker may make an average salary of anywhere in the range between $55,000 and $85,000. The average annual income is approximately $62,000. Some research analyst make far more, however, and it's not unheard of for the equity research analyst to earn upwards of $100,000, typically topping out at about $115,000. Since most financial analyst positions are located in New York City, it's one of the most popular places to obtain this position and begin one's career. The Bureau of Labor Statistics predicts that this field will grow somewhat over the next decade.
