Equity Analysis As A Career

What Is Equity Analysis?

Equity analysts, also known as stock analysts, use financial expertise to analyze companies traded on domestic and global stock exchanges.

His/her task is to apply statistical skills and investment acumen to evaluate asset selection option and recommend trading opportunities to a firm’s trader.

Once you are employed by a trading firm, your task will be to follow some particular industries or sectors closely, and gain insight into the sectors. Traders, brokers, sales staff and the public turn to equity analysts for professional advice before trading in a particular stock.

Good analytical and writing ability comes in handy as your job will be to review stocks, bonds, and other financial instruments, and then produce an unbiased and factual report for your employer.

Professional Qualifications

You must remember one thing: Equity analysis is part of financial analysis. To enter in this profession one can do bachelors degree in accounts, stats or business administration along with the full knowledge of procedures and policies used in accounting process and all the financial accounting.

Before you start a career as an equity analyst, you need to complete formal education. After that, you will have to enroll yourself in a specialized course, preferably, MBA in Finance. Nowadays, MBA in Finance is being offered by all top B-schools. Through specialized courses, you acquire skills and expertise necessary for spotting trends and interpreting data. Specialized courses impart to you full knowledge of procedures and policies used in accounting process and all the financial accounting.

Follow these steps to become a successful equity analyst:

  • Pursue an undergraduate degree in Economics, Finance or Business
  • Complete a Master’s Degree program in Economics, Finance or Business
  • Seek professional certification
  • Search for a position as an Equity Analyst

Step 1: Undergraduate Degree

You are better prepared, if you have got an undergraduate degree in finance, economics or business.  The degree program should include courses in statistics, finance, accounting and taxes to prepare for a career as an analyst. While studying an undergraduate course, you get yourself acquainted with business regulations and government policies to determine how it will affect the market and business.

Step 2: Master’s Degree Program

A Master’s Degree in finance includes courses to prepare the student to work in the finance industry. Courses include international finance, financial strategy, corporate finance theory and equity valuation.

This degree also ensures better remuneration and better career growth prospects. Academic programme in MBA in Finance or related subjects are offered by almost all leading management schools. To gain an entry into a top tier MBA institute, you will have to appear for a national or international level entrance exam.

Step 3: Professional Certification

In order to be an independent certified equity analyst, you need to complete a professional certification program. The CFA Program is a globally recognized, graduate level curriculum that provides a strong foundation of real-world investment analysis and portfolio management skills along with the practical knowledge you need in today’s investment industry.

CFA examinations cover 10 topics known as the Candidate Body of Knowledge, or CBOK: Ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments and portfolio management and wealth planning.

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