Essay on A Guide to Becoming a World-Class Equity Research Analyst

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A Guide to Becoming a World-Class Equity Research Analyst 1. Profiling an equity research analyst a. Who is an equity analyst? An equity analyst is a person who studies and analyzes financial data and trends for an organization or an industry. An equity research analyst reviews stocks, bonds, and other financial instruments and writes an unbiased, honestequity research report.He studies public records of organizations in order to forecast the organization’simpending financial needs. He writes reports on the organization’s finances and defines the business’s investment potential by assigning financial ratings, such as buy, sell, or hold. He is also accountable for analyzing the financial budget and making a strategy to get out of debt, if…show more content…
There is a quasi-mid-level where you could have senior analysts and then just analysts, but it’s much less categorized than say, Investment Banking. Equity research is more about how good you are at servicing clients and giving insightful ideas – here we don’t need an assembly of people as you do with Mergers & Acquisitions deals. There are usually 2 – 3 Associates and 1 Senior Analyst on each sector/industry team – so if we’re covering 20 companies, each associate might be covering about 5 companies. c. Where can you work? As an equity analyst you would typically work in a brokerage house, analyst or securities firms, equity or security investment firms, commercial or retail banks, NBFCs (non-banking financial corporation), insurance companies, mutual or pension funds, or other such financial companies. As an equity research analyst you will have to work on both the sell side as well as the buy side. As a sell-side analyst you will typically work at an investment bank or with an independent research company, whereas as a buy side researcher you typically will be workingwith hedge funds or investment management companies. On the sell side, your research will be driven by stock performance and you will have to develop cash-flow models and earnings of the organizations you follow in a particular sector or industry. On the buy side, you will most likely follow some 30 to 40 companies in two to three different sectors
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