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Wednesday, August 2, 2017

Financial analyst and their jobs in stock market

Financial analyst

They are often employed by mutual and pension funds, hedge funds, securities firms, banks, investment banks, insurance companies, and other businesses, helping these companies or their clients make investment decisions. Financial analysts employed in commercial lending perform balance sheet analysis , examining the audited financial statements and corollary data in order to assess lending risks. In a stock brokerage house or in an investment bank, they read company financial statements and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company's value and project future earnings. In any of these various institutions, the analyst often meets with company officials to gain a better insight into a company's prospects and to determine the company's managerial effectiveness.using spreadsheet and statistical software packages to analyze financial data, spot trends, and develop forecasts

Typically have academic backgrounds in business-related studies at the undergraduate and graduate level. They may also have professional designations like a CFA,CPA,and JD. There is also growing minority of sector of analysts, who sprout from their prospective areas of expertise like healthcare, engineering and technology.

The two main sides, buy side and sell side analysts. The main difference between the two is the types of firms they work for and, in some cases, how they are compensated. There are many types of buy side analysts working for firms that sell their research for a fee; they can work for an asset manager and invest in the stocks they cover. Buy side includes investment institutions such as mutual funds, which buy securities for personal or institutional investment purposes.
Sell side analysts, work in a transaction-based environment selling their research to the buy side group, hence their name. A sell side analyst working for a brokerage can cover a group of stocks, industries, sectors or even entire market segments. Sell side analysts have been under a bit more scrutiny due to the close relationships they have with the companies they issue buy ratings for.

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