An Equity research analyst study companies for
investment purposes. The equity analyst researches trends in an industry,
location or type of product. Investors use this information to predict the
future of stock prices. An equity research analyst spends his time reviewing
data regarding financial transactions surrounding equity in property
or financial instruments. This job is very similar to financial, securities, or
investment analysts. A Sell-side equity
analyst work for companies that sell their research to clients; buy-side equity
analysts are employed by banks, mutual funds and hedge funds who use their
research to inform their own stock purchases.
People who have an analytical thought process,
enjoy working independently, and are comfortable exploring multiple scenarios
find the greatest satisfaction in this type of work. The most important skill
for an equity research analyst is data
manipulation and management. Attention to detail, discipline, and focus are all
essential for anyone who wants to work as an equity research analyst. Most equity research analysts have at least a
college degree, and many choose to become chartered financial analysts.
Pursue
an undergraduate degree in Economics, Finance or Business.
The undergraduate degree in finance, economics or business prepares the student
for an entry-level position in an investment firm. The degree program should
include courses in statistics, finance, accounting and taxes to prepare for a
career as an analyst. Equity analysts must be familiar with business
regulations and government policies to determine how it will affect the market
and business.
Complete
a Master's Degree program in Economics, Finance or Business. A
graduate degree increases the employment opportunities available to
individuals. Students should pursue advanced courses such as bond valuation and
risk management to pursue a career as an equity analyst. A Master's Degree in
finance includes courses to prepare the student to work in the finance
industry. Courses include international finance, financial strategy, and
corporate finance theory and equity valuation.
Complete
an internship program in Finance. A graduate degree
program may provide the student with an opportunity to complete an internship
in an investment firm or business. The internship provides the student with
hands on training in finance and equity analysis. Employers consider internship
experience in other organizations when making hiring decisions for financial
positions. An internship can lead to an offer of employment after completing an
MBA program for students.
Seek
professional certification. Professional certification improves
the chances of employment as an equity analyst after completing a graduate
degree program. The CFA Institute offers the Chartered Financial Analyst (CFA) credential
to candidates who meet the educational requirements and pass 3 levels of examinations.
Candidates to become CFA must also have work experience in the field to qualify
for certification. Students may study for the examinations while obtaining the
required work experience. Becoming a CFA
charterholder opens many doors, and some employers even assist with the costs
associated with the program. Most senior equity analysts and portfolio managers
are CFAs.
Search
for a position as an Equity Analyst. Equity analysts may find
positions through professional recruiters who specialize in the financial
industry. Job boards and classified advertisements are additional methods for
finding a position in the field. An entry-level position in the financial
industry may lead to a position as an equity analyst as well.
