Securities Analysts - How to become a Securities Analysts

Securities Analyst is the  finanacial experts who themselves don't invest in the shares rather they  research and evaluate companies, find out their profitability and sustainability with the current profits, look for indications of growth and expansion, project the company's future earnings and on the basis of their observations, make recommendations to clients on which securities to buy or sell. As these professionals are considered well-learned and held in high esteem by the investor thus it becomes the responsibility of these professionals to work with utmost sincerity so as to get the precise analysis of the facts they collect.

With the tilting of the interest of the present day youth from government jobs towards the self employment/entrepreneurship and spreading of knowledge about the world’s stock markets by the Print and Visual mass media among the general public, the interest of the present day youth has increased toward the share markets as a profession and as a new field to make his fortune in quick times. Some have started trading themselves and few more smarter one’s are planning to be share brokers and other highly talented and educated are seeking to join trading firms as Stock Analysts also known as Research Analysts, Securities Analysts, Market Analysts, Financial Analysts or simply as Analysts. The job prospects of Securities Analysts are tied to the stock market i.e it’s highs and low’s.

An ideal share analyst should have a strong sense of purpose. They should be able to handle heavy work load, prioritize and complete work under strict deadlines, work as part of a team and be able to keep an eye on the new technologies and developments in this field. With a lot of scope for growth and specialization the job offers new challenges everyday and is quite prestigious and well paying too.

So to be a Stock analyst one has to be really dedicated and hardworking. The job of a Stock analyst demands intensive knowledge of every aspect of the share market along with foresight to predict to some extent the direct of flow of the market. For this, one should have the capacity to work hard with commitment and honesty. The job requires a lot of hard work, alertness of mind, foresight, and adaptability. To discharge his duties efficiently and effectively he requires special training comprehensive knowledge in more than one area of the trade.

Eligibility to become a Stock Analysts

1. Educational Qualification

• The eligibility for entering this field is an MBA preferably in finance.
• The field is also open to aspirants with a bachelor's / masters degree and experience in the financial services industry or statistical research.
• Trainee positions are available to candidates with bachelor's degree in business administration, finance or economics or those with post graduate degree in commerce.

2. Desired Additional Qualifications

• Working knowledge of the subjects like engineering, biotechnology, pharmacy etc., in addition to subjects like accountancy, economics and statistics gives an analysts a bit more advantage in their field as this gives them a better understanding of those fields and can help them in making investment decisions in those sectors with confidence too.
• Besides the above given mandatory qualification one should have computer, analytical, mathematical and problem solving skills to interpret the data of the company effectively in a scientific manner and predict the out comes as precise as possible.
• Besides they should have excellent presentation skills, self-confidence, maturity as well as the ability to work alone. An analyst should also posses skills like strong attention to detail, a drive for research, an understanding of tax and other laws related to the financial services

How to become Security analyst?

To become Stock Analysts one has to follow the below given steps:

To become a professional stock Analysts one must have a strong education background Preferably MBA in finance from an institute of repute.

Step 1

A securities analysts job involves a lot of reading, research, meeting people, writing etc. The analyst has to Study Company’s history, and about its products and services by referring books and trade publications, financial reports, by studying the public records of the company, or by participating in public conference calls. Based on this preliminary research, the analyst may shortlist companies in a particular industry he or she is dealing with and then proceed to study the same thoroughly. Analysts usually study an entire industry, observing and assessing the current trends in business practices and industry competition thereby shortlist companies which can be good for the investment.

Step 2

The next step is meeting the top management of the shortlisted companies and gathering detailed information about them. After having collected detailed information about companies the analyst has to prepare a report on the company consisting of a description of the business and the company's investment potential and project future earnings.

Step3

Once the report is ready the analyst has to use his/ her marketing skills to sell his/ her services to traders, brokers and investors by making recommendations about investing opportunities and convincing them to buy or sell the concerned securities.

Securities Analyst Job Description

Securities analyst job include researching and evaluateing  companies listed in stock markets finding out their profitability and sustainability exploring their growth and expansion, prospects, project the company's future earnings and on the basis of their observations, make recommendations to clients on which securities to buy or sell.

Career Prospects

Starting from Trainees Stock Analysts the aspirant can climb the following ladder to the apex of his field.

1. 1. Investment banker.
2. 2. Investment advisors or financial consultants.
3. 3. Portfolio analysts.
4. 4. Portfolio managers. (Require licensing from SEBI)

Security Analyst Salary

Security Analyst with MBA and post graduates as their professional qualifications can expect to get Rs. 25,000 and above at the entry level. Many employers may give bonuses which can be equal to or double the begining analyst's salary. This is actually the performance based commission given in addition to the salary. The earnings of top professionals can go up to lacs and crores depending upon their performance and the consistency in it.