What Is a Securities Analyst?

What Is a Securities Analyst?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

A securities analyst is a finance professional who studies and assesses the value of securities – like stocks and bonds. Their work is often employed by investors to make informed decisions on buying, holding, or selling shares. Securities analysts extensively analyze financial data, forecast business, industry, and economic conditions, recommend a course of action for investment, and report their findings to clients. Their evaluations are essential for businesses and individual investors alike when planning future financial moves, like investments.

Related Questions

1. What education is required to be a securities analyst?

To become a securities analyst, you typically need a bachelor’s degree in a related field like finance, accounting, economics, or business. Some firms may prefer candidates with a master’s degree in business administration or finance. Additional certifications – such as Chartered Financial Analyst (CFA) – can also be advantageous.

2. What skills does a securities analyst require?

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Securities analysts need a strong understanding of financial data analysis, proficiency in spreadsheet software, and a keen understanding of financial trends. In addition, they should have excellent analytical, mathematical, decision-making, and communication skills.

3. Do securities analysts have opportunities for advancement?

Yes, after gaining experience, securities analysts can progress to roles such as senior analysts, portfolio managers, or even securities traders. Eventually, they may advance to high-level positions like chief financial officer (CFO).

4. What is the difference between a securities analyst and a financial advisor?

A securities analyst primarily conducts financial analysis and builds investment strategies. In contrast, a financial advisor typically works directly with clients, providing them with financial guidance, planning services, and investment options based on their financial goals and risk tolerance.

5. Is becoming a securities analyst lucrative?

Becoming a securities analyst can be financially rewarding. The exact salary depends on the location, industry, the level of experience, and the size of the company. But due to the high level of expertise required, securities analysts often earn an above-average income.