What Are the Responsibilities of a Financial Analyst?
Financial field is a broad term for things regarding financial instruments, such as investments, the transfer of funds, interest on loans, and so on. It also encompasses business practices regarding investments, business banking, economics of finance, risk, investment securities, banking, investing, securities, the market for foreign exchange, and international business. One can also include tax aspects in this field.
Basically, Finance deals with the science or the mathematics of money. Its scope may go far beyond the world of commerce. In fact, it is one of the most important supports of Science, which is called Economica. Basically, it deals with the problem of organizing economic activity in a manner desirable to the social structure and interest of society at large. The scope of financial science varies from one region or country to another.
There are various branches of the subject, in current practice. Some of them are Public Finance, which study the role of public financial agencies like central banks, and other financial institutions in assisting economic activity; Monetary theory and practice, which study the theory and methodology of monetary financing; Business case theory, which studies the underlying assumptions and methodology of businesses; Public finance, which study the role of public institutions in financing various aspects of public life; Engineering finance, which study the financial aspects of organizations of engineering and related fields. Besides, there are various other branches, as well. These are: the private finance, which study the private finances of individuals and families; International finance, which study the foreign exchange markets and the various aspects involved in them; Public finance, which study the performance of various governmental programs and policies; Business finance, which look into the finances of a company as a whole. Other subparts of this include management science, which looks into issues of personnel, organization, production, sales, marketing, etc., while accounting is often regarded as a subpart of financial science, as it usually refers to bookkeeping.
The study of financials also includes aspects like insurance, which is concerned with obligations of individual and corporate consumers or groups, corporations, mutual funds, bonds, and insurance companies. Some of the best companies in the world are listed as members of the New York Stock Exchange, which is primarily companies involved in finance and the securities market. Corporate finance is the area that focuses on the assets, liabilities, ownership structure, management style, ownership goals and objectives, short-term and long-term funding perspectives, working capital management, financial reporting, investment banking, brokerage, and financial analysis. Then, there are finance courses such as the Bachelor of Science in Accounting that is specifically aimed at providing financial knowledge for accountants who want to specialize in this field.
On the other hand, those wanting to work as financial analysts should have a degree in business or accounting. This can be an associate’s degree or a bachelor’s degree. Most international banks require that their analysts have a bachelor’s degree in finance or accounting before they can apply for jobs in any of the banking or financial institutions in the United Kingdom. There are many financial analysts who are employed by large corporations, because large corporations usually hire professionals with a graduate degree in finance and accounting.
The responsibilities of financial analysts are varied. Some duties include performing analysis of the financial situation of the institution and performing analysis of the strategies that the company will take to meet their financial goals. The financial analysts may also be asked to make predictions about the future trends in the financial market. A financial analyst must have excellent interpersonal skills, analytical skills, and good mathematical skills. To become a financial analyst, you need to have at least a bachelor’s degree in finance, accounting, or economics.