Essay on financial analyst
The job of a financial analyst is extremely important in the contemporary society, especially in the time of the economic turmoil. On the other hand, the job is very perspective and offers wide perspectives for career development. The Financial Analyst is a specialist, who studies the basic economic parameters that give an objective assessment of the financial condition of the company. Most of the duties of a financial analyst are to analyze the situation in the stock market to take a decision on the allocation of capital. In the course of the work of the Financial Analyst, he/she prepares analytical reports and recommendations, on the ground of which business owners make a decision to invest.
The activities of this profession are: analysis of assets (property); analysis of the sources of financing; analysis of solvency (liquidity); analysis of the financial results and profitability; analysis of business activity (turnover of funds); investment analysis and investment; analysis of the probability of bankruptcy; comprehensive assessment of the financial condition; preparing financial projections, conclusions and recommendations, as described by Michael Wolfe.
The major employers of the financial analyst are banks, financial departments of companies manufacturing sector, insurance companies, investment funds, and brokerage firms. Professional skills required for the financial analyst are knowledge in macro-and microeconomics, knowledge of the legislation governing the financial activities of enterprises, knowledge of the market and equity securities, and the ability to work in a specialized computer program designed to analyze and calculate data, as described in Financial Analyst interview Questions and Answers.
In addition, the duties of the Financial Analyst include asset management, analysis of financial markets (conducting surveys of experts, the news of the economy and finance in real time), work with economic statistics and reports on leading economic powers, reporting, forecasts or conducting various analytical studies, maintaining contacts with investors, and counseling, as stated in Interview with Matthew Harrigan: A Financial Analysts’ take on DIRECTV’s Latam Assets.
Today, the Financial analyst is a specialist, who deals with financial analysis above all. The financial analysis is one of the newest trends in the economy. First, experts in the financial industry appeared in the West in the 1930s and became immediately very popular. The demand on financial analysts in the country increased in the 1990s. Often the public perceives the job of the financial analyst as the job of the expert, who can analyze any financial performance and to draw conclusions on the ground of that analysis, as stated in Financial Analyst Duties and Responsibilities.
Furthermore, there are two similar professions which often intertwine with one another: financial and investment analyst. In fact, they both involve the performance of similar functions: to do financial analysis of the company. But the difference between them still persists. Investment professionals, exploring the indicators make predictions about changes in the market and findings concerning investments in a particular company. In contrast, the task of the financial analyst is to analyze financial performance, on the basis of which he/she makes conclusions concerning the performance of the company and prepares reports to stakeholders, as described in Financial Analyst.
A graduate or young professional, having a good training (i.e. he/she meets all of the requirements mentioned above), can start a career of a professional financial analyst. To begin a career of a financial analyst, one can take the position of the analyst or assistant analyst. Responsibilities of the analyst or assistant analyst will be to work with mathematical models (at the initial stage of introduction and data processing), the collection of information on the particular market, or to perform other simple orders of the senior staff. The most common type of the career growth for the financial analyst includes the following positions: Junior Analyst (Assistant Analyst), Analyst, Senior Analyst, Deputy Head of Department, Head of the Department, as stated in Financial risk analyst.
Demographic characteristics of the financial analyst are as follows: the financial analyst is a relatively young, but very demanding professional. This job is relatively new in the modern labor market. As a matter of fact, many people today cannot distinguish clearly between the career trader and financial analyst, as they are very similar and perform similar functions. The analyst must conduct a qualitative analysis of the situation on the financial market. However, as the finance is a very broad field to study and analyze, each financial analyst has to be able to evaluate a particular section of either the stock market, or the financial performance of the company, or a particular sector of the economy, or to analyze the economy. However, the primary concern of the financial analyst today is the situation in the stock market, foreign exchange market and the commodity market, as stated by Roxy White.
The analysis in general is a very complex process that involves many steps. The first steps are the collection of relevant information, market monitoring, ordering data and identifying trends. Second, there is the preparation of the existing pattern to identify the main trends in the development of the market and significant changes in the financial plan. Third, the analyst should make a detailed analysis of the situation on the financial market, to predict the further development of the situation and to make recommendations for further action in the market. Actually, the forecast and recommendations are the main purpose of the financial analysis and the quality of the work of the financial analyst depends entirely on the final economic impact, as stated in Financial Analyst: Job Profile & Salary.
The job of a financial analyst includes the following:
– Monitoring the situation in financial markets;
– Analysis of the economic activities of companies;
– Advice on financial matters;
– Preparation of daily analytical reviews and reports;
– Preparation of financial forecasts and economic advice to clients on IP management (portfolio) and bidding;
– Component of materials for publication on websites and media.
Skills necessary for a financial analyst are complex. A financial analyst is very responsible and has to deal with financial risks, which can be avoided only if the financial analyst has the following skills:
– Extensive knowledge in the economy as a whole;
– Constantly analyzes the changes in the stock market;
– Is familiar with the financial reporting;
– To be able to see economic activity as a single enterprise, and the market as a whole;
– Owns tools of analysis of the market and ensures innovation in this matter.
Certainly, there are certain minimum requirements in order to become a financial analyst:
– Higher education;
– Experience in finance at least one year;
– Knowledge of the basic tools of financial analysis;
-Own PC.
All in all, the value of a financial analyst is the accuracy of his/her predictions. To achieve this quality the financial analyst should have an analytical mindset and “financial insight.” Nowadays the job of a financial analyst is required in different fields and organizations. This job is always in demand. There are obvious career perspectives for those who have chosen to be financial analysts. It is important to be in trend nowadays to succeed and to be open to new opportunities. Who owns the information, owns the world!
Interviews involving professionals working in different fields, who have expertise knowledge in the field of the financial analysis, reveal the fact that the job of the financial analyst is very prospective and opens large opportunities for young professionals, who choose the job of the financial analyst. At the same time, future financial analyst should have a bunch of skills, including the ability to conduct the in-depth analysis of stock markets, monitor the situation in the financial market, and others. The development of professional skills will help financial analysts to make a successful career. The demand on the job of a professional analyst is stable and high. Hence, this job is very prospective.
