What does a Research Analyst do?
Research analysts, or security analysts, prepare investigative reports on securities and other assets. They examine and revise information used by financial institutions or external clients. Research analysts spend most of their time developing financial models that are constantly in flux. After accumulating all of the necessary data, they report their findings with one of three recommendations: buy, sell or hold.
Working as a Research Analyst
Working as a research analyst involves successfully being able to:
- Identify areas of improvement within the organization's finances.
- Offer analyses of trends and forecasts for recommended actions.
- Use spreadsheets to organize, analyze and interpret complex financial data.
- Perform variance analysis on past results.
- Create presentations to present findings to leadership teams.
How much does a Research Analyst make in the United States?
Frequently asked questions
Do research analysts have advanced career opportunities?
Research analysts often start under a senior research analyst before moving on to manage their own firms and account without supervision. Further positions include equity analyst and its senior positions and portfolio manager. Some advanced positions require graduate degrees such as a Master of Business Administration.
What's the difference between a financial analyst and a research analyst?
Financial analysts analyze and interpret complex financial information and industry markets to inform business managers on better decisions. Alternatively, research analysts play a more investigative role, reporting on the data they discover internally within an organization.
What's the average day like for a research analyst?
The average day begins with arriving at work around 8 a.m., about two hours before the market opens. You find your desk, answer emails from important contacts, read financial news and monitor overnight developments. The rest of your day is spent monitoring, researching and updating financial models in accordance with market fluctuations. You may also reach out to new companies to provide coverage on.