What is a Financial Analyst and What is His Role in Company?
A financial analyst is someone who handles various aspects of other people’s money. Some analysts work as investment advisers, either on their own account or with a company. Depending on the wealth and size of their clients, they can manage portfolios worth millions of dollars. Other financial analysts work for banks or insurance companies, ensuring that even when a loan fails or a claim is paid, the company maintains a positive cash flow. Others specialize in mergers and acquisitions, determining the profitability of two companies that combine their forces in a merger or a company that buys another company in an acquisition.
What does a Financial Analyst do?
Financial Analyst monitor and interpret available data such as industry and economic trends, forecast current trends in probable future profitability, determine fair market value for the sale of company stock, and recommend shares to your company or investors.
Some financial analysts support the growth of “green” industries and can analyze the costs and benefits of including green technologies in new construction. They can monitor and interpret climate change or clean water data to calculate supply and demand, or invest in water rights, energy futures and other tradable products within the industry.
Successful financial analysts are excellent critical thinkers; They can logically determine the best course of action with respect to any potential investment. They must be permanent and active apprentices to stay updated in relation to market conditions and new technologies, and be able to predict the long-term results of their investment decisions.
An analyst identifies potential problems within their investment options and seeks a solution to the problem or opts for the opportunity. Excellent communication skills, combined with the ability to communicate large amounts of complex data in clear and concise presentations, allow the analyst to convey their investment opportunities in a way that encourages clients to sign.
An analyst is willing to take risks in order to generate profits, but he is also an expert in risk management and sensitive to the level of risk acceptable to his clients. Integrity, reliability, attention to detail and initiative are the characteristics of a successful analyst.
Financial analysis is a fast, cutting-edge and highly competitive career. A thorough knowledge of the chosen fields at the macroeconomic and microeconomic level increases an analyst’s opportunities for advancement within his specialty area.
What is a Financial Analyst’s workplace like?
Most financial analysts work in an office environment. Some analysts travel to visit potential investors and perform practical evaluations that allow them to accurately decide the value and potential risk of each investment. Financial institutions and insurance industries employ the majority of analysts, usually in financial centers around the world.
What are the different areas of finance in which a financial analyst can work?
Apart from the typical office environment where financial analysts work, you must also take into account the different areas of finance in which you can work.
Investment banking is the area with which most people associate financial analysts, but some financial analysts insure jobs in corporations and businesses that are not totally investment-focused. These companies can participate in any business area. You can also take help from financial experts like Mark Attanasio and Donato Sferra who are working as Financial Services Executive in Toronto and has helped many business owners.