The Financial Analyst Job Description

Want to know what the financial analyst job description is? In this article, I will talk about the financial analyst job. Indeed, one the best CFA careers, if not the best, is none other than becoming a financial analyst at a top financial organization. A financial analyst job description includes making financial predictions and expected future outcomes of a company based on current economic conditions as well as its past performance.

A financial professional typically recommends to investors or employers whether to buy or sell a particular company’s stock based on his or her analysis and judgment. No doubt, he or she must know how to read the market movements so that he or she can provide the best recommendation possible. Due to the heavy responsibility,the payoff for a financial analyst is certainly much higher than most of other investment and finance jobs. In addition to a high salary, a financial analyst will usually receive commissions and bonuses when the recommendations he or she provides turns out to be very good.

The Training

To fulfill all of the job descriptions, one needs to have the necessary education background as well as related working experience. This job position requires employees to have excellent education in mathematics, accounting, statistics, economics, and business management. While you can opt to work as a financial analyst with only an undergraduate degree, those holding an MBA will many a times, will result in greater pay than those who do not.

Those without an MBA or business degree can also apply for the financial analyst position by taking on some tests in order to meet the necessary credentials for the position. The other option is to join the Chartered Financial Analyst (CFA) program. The CFA program will allow the candidate to gain a wide knowledge of accounting practices and financial tools used in the investment world.

.The Types of Positions

Indeed, the financial analyst’s responsibilities involves a wide range of important functions.One thing to remember is that a financial analyst must establish strong bonds and trust with clients. This means that a financial analyst must build a solid foundation with clients so that they will have faith in the recommendations provided He or she basically can work for various types of companies which includes buy-side investment firms, sell-side investment firms, insurance companies, and investment banks.

Buy-side firms refer to companies such as hedge funds and mutual funds. The financial analyst working for buy-side firms will help to map out a detailed investment strategy. Sell-side firms are usually banks, securities dealers, and other companies in the business of selling stocks and bonds. Here, they will help these companies to sell their securities effectively and efficiently.

Some other positions in this field includes becoming a portfolio manager, fund manager, and ratings analyst. Portfolio managers usually oversee a team of analysts and make decisions together on which is the best mix of securities to invest in. The mix is formed from different industries and sectors. On the other hand, fund managers oversee the hedge and mutual funds. These two positions are extremely dynamic and require one to have the ability to make quick buy or sell decisions in order to make their portfolios outstanding. And finally, a ratings analyst’s task is to determine the capacity of various companies in paying off their debts


Financial analysts do require to have some licenses in order to carry out their duties. Many are sponsored by their employers to get the licenses. Licensing is particularly important for those who work for sell-side firms and it is overseen by the Financial Industry Regulatory Authority (FINRA). Some jobs may even require more than one license. A financial analyst will have to be issued a new license upon changing jobs.

How to Be Successful

In order to be successful as a financial analyst, a person need to be well-informed and knowledgeable in several areas in the financial subjects. In addition, this person should be comfortable in using computer software packages such as those sophisticated spreadsheets and able to churn out detailed statistical analysis. Moreover, this person should also be comfortable and meticulous with extracting details from the complex financial reports. Finally, one ought to have strong financial knowledge in how does the money market, tax laws, business environment, and government actions affect a company’s performance and the economy as a whole.