Financial Analysts

Career summary

#currently in 1614 accountants & auditors, no alt titles or data moved over, checked 2/27/19 lh

Financial analysts gather information to make investment decisions. They read financial reports, industry projections, and environmental and economic forecasts. They watch for business trends and try to determine how they will affect investments. This includes green trends in construction and alternative energy industries. Other factors that affect investments include carbon emissions, water supply, and extreme weather.

In addition to monitoring the economy as a whole, analysts also monitor specific companies. They attempt to determine if investing in a company is worth the risk. For example, they may suggest investing in a company based on its commitment to green construction practices. Analysts use statistical methods to analyze the data and predict business conditions.

Once they have analyzed all their information, analysts prepare reports that explain their findings. They design and prepare tables, charts, and graphs for these reports. They often deliver these reports to clients and to other analysts.

Based on their analyses, analysts advise clients about when to buy or sell financial products. Advice may include investments related to energy futures and water rights. They call brokers and ask them to purchase financial products for their clients.

Analysts also may determine pricing of new stocks and bonds. They also stay up to date about changes by taking additional training and reading economic journals.

Related careers

This career is part of the Finance cluster of careers.

Related careers include:

• Accountants and Auditors
• Actuaries
• Budget Analysts
• Cost Estimators
• Credit Analysts
• Credit Counselors
• Economists
• Financial Counselors
• Financial Examiners
• Financial Managers
• Forensic Accountants
• Job Benefits and Analysis Specialists
• Management Analysts
• Market Research Analysts
• Tax Examiners

Job duties

Task list

The following list of tasks is specific to financial analysts.

• Gather business, industry, environmental, and economic information.
• Interpret data on business trends and forecast their effect on investments. This includes “green” trends in industries like construction, and alternative energy.
• Evaluate the quality of various securities.
• Use computers to track and analyze information.
• Prepare investment plans based on investment information. This includes investors and grants for “green” industries, impacts of energy and carbon futures, and other “green” business issues.
• Use spreadsheet software to draw charts and graphs to illustrate reports.
• Advise clients about when to buy and sell investments.
• Analyze financial data to make investment decisions. Use environmental data to make long-term choices.
• Call brokers and purchase investments for clients.
• Stay up to date on developments in the field.
• Present reports on economic trends.

Common work activities

Financial analysts perform the following tasks. These tasks are common to many careers.

• Use computers
• Get information needed to do the job
• Analyze data or information
• Process information
• Identify objects, actions, and events
• Evaluate information against standards
• Establish and maintain relationships
• Monitor events, materials, and surroundings
• Update and use job-related knowledge
• Organize, plan, and prioritize work
• Make decisions and solve problems
• Think creatively
• Estimate sizes, quantities, time, cost, or materials needed
• Communicate with supervisors, peers, or subordinates
• Explain the meaning of information to others
• Document and record information
• Judge the value of objects, services, or people
• Communicate with people outside the organization

Work requirements

Working conditions

In a typical work setting, financial analysts:

Interpersonal relationships

• Have a medium level of social contact. They work closely with clients, but also spend time alone analyzing information.
• Are somewhat responsible for the work done by other workers.
• Communicate by e-mail, telephone, and in person on a daily basis. They also write letters and memos, but much less often.
• May work as part of a larger team of analysts.

Physical work conditions

• Always work indoors.
• May share office space with others.

Work performance

• Must be exact in their work. Errors could cause clients to lose money.
• Repeat the same physical and mental tasks.
• Make decisions that affect clients and their company on a weekly basis. They usually decide a course of action without consulting another first.
• Set nearly all of the daily tasks and goals without talking to a supervisor.
• Work in a competitive atmosphere where strict weekly deadlines must be met.

Hours/travel

• Usually work at least 40 hours per week.
• Generally work a set schedule.

Physical demands

Financial analysts frequently:

• Sit for long periods of time.

It is important for financial analysts to be able to:

• See details of objects that are less than a few feet away.
• Speak clearly so listeners can understand.
• Understand the speech of another person.

It is not as important, but still necessary, for financial analysts to be able to:

• See details of objects that are more than a few feet away.

Skills and abilities

Financial analysts need to:

Communicate

• Understand written information.
• Read and understand work-related materials.
• Speak clearly so listeners can understand.
• Write clearly so other people can understand.
• Understand spoken information.
• Listen to others and ask questions.

Reason and problem solve

• Analyze ideas and use logic to determine their strengths and weaknesses.
• Use reasoning to discover answers to problems.
• Combine several pieces of information and draw conclusions.
• Notice when something is wrong or is likely to go wrong.
• Judge the costs and benefits of a possible action.
• Recognize the nature of a problem.
• Understand new information or materials by studying and working with them.
• Follow guidelines to arrange objects or actions in a certain order.
• Develop rules that group items in various ways.
• Identify what must be changed to reach goals.
• Recognize when important changes happen or are likely to happen in a system.
• Think of new ideas about a topic.
• Concentrate and not be distracted while performing a task.

Use math and science

• Add, subtract, multiply, and divide quickly and correctly.
• Use math skills to solve problems.
• Choose a mathematical method or formula to solve problems.

Manage oneself, people, time, and things

• Check how well one is learning or doing something.

Perceive and visualize

• Identify a pattern (a figure, object, word, or sound) that is hidden in distracting material.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Accounting
• Business Economics
• Finance
• Financial Forensics and Fraud Investigation

Other programs of study to consider

• Actuarial Science
• Applied Mathematics
• Business Management and Administration
• Economics
• Insurance
• International Business, Trade, and Finance
• Mathematics
• Statistics
• Taxation

Training

To work as a financial analyst, you typically need to:

• have a high school diploma or equivalent; and
• have a bachelor's degree.

Education after high school

Financial analysts need at least a bachelor's degree. Good majors are finance, accounting, statistics, and economics. A master of business administration (MBA) degree is an excellent way to prepare for this career.

Regardless of major, you should take courses in accounting, finance, economics, business, mathematics, and law. Courses in investments, taxes, estate planning, and risk management are also very helpful.

Work experience

Working in an accounting office, with a securities firm, or in a bank can give you good experience and contacts. Working as a research assistant in a brokerage house is also good experience.

On-the-job training

Many companies provide on-the-job training for new analysts. In general, training lasts between 6-12 months.

Helpful high school courses

In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements. Financial analysts need excellent math skills so you should take as many math courses as possible.

You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.

Helpful electives to take in high school that prepare you for this career include:

• Accounting
• Banking and Finance
• Computer Applications

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

For entry-level jobs, employers prefer applicants who have a bachelor's degree. They may require a master's degree for more advanced jobs.

Employers look for analysts who have a good understanding of the economy and statistics. They also look for analysts who have good communication skills, and a working knowledge of personal finance, economics, and financial instruments.

Costs to workers

Workers who join a professional association may pay a membership fee and annual dues. They may also attend courses, seminars, and workshops to update their knowledge of economic conditions and trends, and to keep up with changes in the field. Workers are expected to have appropriate business clothes. Financial analysts who wish to be certified by national associations may have to pay for education, testing, and continuing education for certificate maintenance.

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Financial Analysts 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Pay varies by employer and area of the country. The analyst's education can also impact wages. Those with advanced degrees usually earn higher salaries.

Financial analysts who work full time generally earn benefits. Typical benefits include paid vacation, sick leave, and health insurance. Some employers also provide a retirement plan.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Major employers:

• Stock brokers and dealers
• Business management companies
• Banks and credit unions
• Insurance companies

National outlook

As more businesses and people make investments, the need for financial analysts will increase. Investment portfolios are complex. This leads many people to seek someone to help them select their investments. Analysts will also be needed in the investment banking field. They help companies raise money or merge with other companies. However, positions in this industry are sensitive to changes in the stock market. Thus, when investment slows, analysts may work less or be laid off.

Because this job pays well, many people want to enter this field. Competition for analyst jobs will be strong. Job prospects will be best for those with certifications and an advanced degree.

Other resources

AgCareers.com 
Western USA Office
866.519.7445

American Academy of Financial Management 
1670 F East Cheyenne Mtn Blvd
Colorado Springs, CO 80906

eFinancialCareers 

National Association of Securities Professionals 
901 K Street, N.W., Suite 310
Washington, DC 20001
202.371.5535

References

Career cluster

• Finance

Career path

• Conventional (Business Operations)

O*Net  occupation

• Financial Analysts (13-2051.00) 

O*Net job zone 

• Job Zone 4 - Considerable preparation needed. A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations.

DOT occupation

• Investment Analyst (160.267-026) 

Strong Interest Inventory

• Financial Analyst
• Financial Manager

Holland occupational cluster

• Conventional/Investigative/Enterprising

COPSystem

• Business Professional