Financial Analyst

Your Fit

Income

$101K

Preparation

Considerable

Growth

7.6%

Definition
Your fit with this career
How much they earn
What they do
Job satisfaction
How to become

What is a Financial Analyst?

A Financial Analyst is a professional who assesses the economic performance of companies and industries to assist businesses and individuals in making informed investment decisions. They analyze financial data, study economic trends, assess investment opportunities, and provide recommendations based on their findings.

Your test results

Why this fit score?

The fit report shows your areas of fit and misfit with Financial Analyst.

Fit report

Test scores

The scores report summarizes what we learned about you. It shows your results on everything measured in the career test.

Scores report

How much does a Financial Analyst earn

According to the U.S. Bureau of Labor Statistics, typical income (in USD) is...

Bottom 10%	Bottom 25%	Median (average)	Top 25%	Top 10%
$62K per year	$78K per year	$101K per year	$132K per year	$181K per year

Compared to other careers: Median is $52K above the national average.

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What does a Financial Analyst do?

Work environment

Financial Analysts typically work in offices, often for financial institutions such as banks, investment firms, and insurance companies. Their work involves a significant amount of time spent on computers analyzing data, creating financial models, and using complex financial software. They may also attend meetings and present their findings to management or clients.

Quick task list

Analyzes financial data and trends.
Creates financial models for decision support.
Performs valuation analysis on companies and industries.
Prepares reports and presents findings to management or clients.
Recommends investment strategies or financial products.

See full list of tasks with expert relevance ratings

Areas of specialization

Equity Analysis: Focusing on stock market analysis and stock valuation.
Credit Analysis: Assessing the creditworthiness of bond issuers and fixed-income investments.
Risk Analysis: Identifying and analyzing financial risks associated with investments.
Portfolio Management: Advising on and managing investment portfolios for clients.
Quantitative Analysis: Using advanced mathematical and statistical techniques to analyze financial markets.

Description

Financial Analysts play a crucial role in the world of finance, guiding investment decisions by analyzing financial data, market trends, and economic factors. They use their expertise to understand how these elements can impact investments and advise clients or their organization accordingly. Their work is pivotal in helping companies and individuals make informed financial choices, whether it's investing in stocks, bonds, or other financial instruments.

The role requires a blend of analytical skills, knowledge of financial markets, and the ability to interpret complex data. Financial Analysts must be proficient in financial modeling and have a solid understanding of economic indicators. They also need to stay abreast of market trends and regulatory changes that can impact investments.

Communication skills are essential, as Financial Analysts often need to explain complex financial concepts in understandable terms to clients and colleagues. The role can be demanding, with tight deadlines and the need to respond quickly to market changes, but it also offers the intellectual challenge and satisfaction of directly impacting financial decisions and strategies.

Job Satisfaction

Sources of satisfaction

The intellectual challenge of analyzing financial markets and trends.
Influencing significant investment decisions and strategies.
High earning potential and opportunities for career advancement.

You might make a good Financial Analyst if you are...

Analytically minded, with a strong aptitude for numbers and data analysis.
Detail-oriented and able to understand complex financial information.
Decisive and comfortable making recommendations based on your analysis.
Interested in financial markets and economic trends.
Able to communicate complex information in a clear and concise manner.

Pros:

High earning potential and good career growth opportunities.
Dynamic and intellectually challenging work.
Exposure to a variety of financial products and markets.

Cons:

High-pressure environment with tight deadlines.
Requires continuous learning to keep up with financial and economic changes.
Can involve long working hours, particularly in corporate finance or investment banking.

How to become a Financial Analyst

Typical education

Becoming a Financial Analyst usually requires at least a bachelor's degree in finance, economics, accounting, or a related field, which is typically a 4-year program. Some positions, especially at higher levels, may require a master's degree or professional certifications.

High school preparation

Courses:

Mathematics, especially statistics and algebra, for analytical skills.
Economics to understand market forces and economic principles.
Business studies to gain a basic understanding of corporate operations.

Extra-Curricular Activities:

Joining investment or economics clubs to get practical experience.
Participating in math or business competitions.
Engaging in simulations like stock market games or investment challenges.

Preparation after high school

Pursue a bachelor's degree in finance, economics, accounting, or related fields.
Consider internships in financial institutions for practical experience.
Obtaining certifications such as the Chartered Financial Analyst (CFA) can be advantageous.

More resources

CFA Institute - Provides information on the CFA certification.
Investopedia - Offers a wealth of information on finance and investing.
Financial Industry Regulatory Authority (FINRA) - Offers resources and information on regulatory aspects.
Bloomberg Market Concepts - An e-learning course that provides a foundation in finance.

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