14 Steps How To Become A Stock Analyst

(doylc.com) How to Become an Equity Analyst - An equity analyst researches trends in an industry, geographic location, or product type. Investors use the information to predict the future of stock prices. The equity analyst may work for an investment firm that focuses on a specific area of ​​the market to make investment predictions. A career as an equity analyst requires formal education, skills and experience in spotting trends and interpreting data. Analysts must have knowledge of mathematics, statistics and research to work in this position. While no specific certification or licensing is required, you may wish to earn specific certification to further your career.

• How To Get an Education an Equity Analyst

1. Earn good grades in high school. If you knew from school that you wanted to get into financial analysis, you should work hard to get good grades. You'll likely need a college degree, so a good high school diploma will help you get into a college or university of your choice.

You should begin to focus on math and business courses as these are most directly related to your future work. A strong background in reading, writing and analyzing will also be helpful.

2. Earn a degree from a reputable college or university. To get a job as an equity analyst, you need a college degree. You can get started with a four-year bachelor's degree, but a master's degree makes you a stronger job candidate. You should focus your studies on economics, finance or business administration.

The college advisor at your high school should be able to help you research colleges and universities with strong finance programs. If you've already graduated from high school, you can try calling your local high school counseling office to see if they can still help you. You can also contact the librarian at your public library or a local college library.

Your degree should include courses in statistics, finance, accounting, and tax to prepare you for a career as an analyst.

Equity analysts need to be familiar with business regulations and government policies to determine how they will affect the market and business.

3. Complete a master's degree. A college degree increases the job opportunities available to you. You will want to look for advanced studies in economics, business administration, or finance.

You should take 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 that will prepare you to work in the financial industry. Relevant courses may include international finance, financial strategy, corporate finance theory, and stock valuation.

4. Take advanced professional courses to advance your career. Even after you've worked as an equity analyst, you may want to continue taking courses. This is a great way to show your employer that you are serious about your career and want to advance within the company.

Professional training courses are offered both online and in the classroom, covering the basics of writing stock reports. This may include topics such as evaluating industry attractiveness, financial models, stock valuation techniques, and writing stock and investment reports.

Check with your employer before registering for such courses. Your company may have an education reimbursement program. You may also be eligible for salary increases related to the courses you take.

• How To Get a Job As a Stock Analyst 

5. Gain practical experience through an internship. One of the best ways to gain experience is through an internship during your studies. Some schools may offer undergraduate internship programs, while other internship programs are for graduate students only. You should try to take advantage of all internship opportunities that are available to you.

As an intern, you will be assigned to one or more mentors in your company. This supervision expands your education and gives you practical experience.

6. Decide on your professional focus. In the equity analyst profession, there are two main directions to take. You can choose to be a sell-side analyst or a buy-side analyst.

Your work in an internship can help you develop a preference for one or the other. Before you apply for jobs, you should at least understand the two types of jobs and the focus of the companies you are applying to.

A sell-side analyst often works for a large investment bank. This person's job is generally to research the financial prospects for companies that the bank intends to list. You will be tasked with deciding which companies have the potential to make the most money in the future.

A buy-side analyst works for mutual fund brokers or financial advisory firms. In this role, you will research companies that are in your employer's portfolio and other companies that represent viable investments.

7. Start building a network of professional peers. A good stock market analyst is not just someone who does research. You must also be a "People". Build strong personal relationships with people you meet along the way, in your internship, or in your classes. These individuals may be helpful in providing references for future applications or links to job postings.

8. Present yourself well with a meaningful cover letter and CV. For many positions, the cover letter is only used to send your CV. However, in the business world, your energy and your ability to write will be judged from the start. You must highlight your relevant experience and express your desire to work hard in this challenging field.

9. Prepare for your job interview. Find out about the company and its past business practices. You want to be able to speak intelligently about the company and the position you are applying for. In addition, you should be prepared to discuss your internship and previous stocks you have researched.

A common question, especially for a position at a top company, would be to ask you to review a specific stock or stocks that you have studied and explain why you would or would not recommend them to a client. In short, you must be prepared to be deployed in the field just as you would be on the job.

Through your interview, you need to exude both enthusiasm and intelligence. You must demonstrate that you are able to analyze stocks, make decisions and communicate your thoughts clearly.

• How To Earning an Advanced Certification With a CFA

10. Explore a joint MBA/CFA program. The most useful certification for an equity analyst is the Chartered Financial Analyst, or CFA. There are other certifications, but the CFA is the most beneficial.

Some top business schools offer MBA programs that include study for CFA certification. The CFA Institute has partnered with 41 graduate schools to offer CFA instruction as part of an existing MBA program.

A joint MBA/CFA program allows you to more efficiently prepare for and earn CFA certification while enrolled in your MBA program.

11. Complete four years of work experience. Before you can apply for the CFA certification, you must have 48 months of relevant work experience in the finance field. This work does not have to be done specifically in an equity analyst role. The definition of relevant work is fairly broad and can include areas such as commerce, economics and corporate finance.

12. Prepare for the CFA exams. To get the CFA charter, you must pass three consecutive exam levels in that order. The Level I exam is offered in either late spring or fall, while the Level II and Level II exams are only offered once a year in late spring.

The pass rate for the exams is very low, so be prepared to study hard for it. The CFA Institute, which administers the exam, estimates that applicants should allow at least 250 hours of study time for each level.

Each level consists of a six-hour exam covering a wide range of finance-related topics. The general range of topics includes:

Ethics and Professional Standards

Quantitative methods

Business

financial reporting and analysis

corporate finance

holdings

derivatives

alternative investments

portfolio management

wealth planning. 

The CFA Institute publishes free study materials online, which you can access at https://www.cfainstitute.org/programs/cfaprogram/Pages/index.aspx. In addition, you can find many commercial materials or study programs online with a simple search.

13. Register for the CFA exams. To learn more about the CFA program and exams, visit https://www.cfainstitute.org/programs/cfaprogram/Pages/index.aspx. Follow the link to "Register" on this page to start your application. This page contains everything you need to register for the exam and apply for CFA certification after you have met all the requirements.

14. Keep your employer informed of your progress and certification. Before you even begin a CFA program, you should discuss your plan with your line manager.

Some companies will appreciate this certification, while others may not value it as much. You will devote a lot of time and effort to your studies, and you need to know that the work will be useful.

If your application is successful, you should then inform your supervisor when you receive your certification. This good news should be included in your personnel file and take you further in the company.