A securities firm has different departments, each of which has a specific job. The analysts work in these different departments to help the others manage portfolios and provide statistical data. They also help traders with market status and investment strategies, and protect their investments. These departments can be divided into traders, Research analysts, and Economic analysts. A securities firm may also employ a variety of other professionals, including a broker or investment banker.
Traders
Traders in a securities firm create markets for buyers and sellers of securities. They also advise clients on their financial positions and often work for a portfolio manager or an individual client. Traders may work for one specific firm or may specialize in one asset class. They usually spend their time communicating with clients about the latest stock prices. They may also hold public seminars or cold-call potential clients to increase their clientele. Traders may also have a part-time job in another department, such as human resources or marketing.
Originally, traders were self-taught, but today most securities firms require a four-year college degree. Typically, traders hold degrees in accounting, finance, banking, or economics. However, liberal arts majors may still have a successful career as traders. Liberal arts programs foster research and analytical thinking, which are important qualities in the work of traders. Traders must be comfortable with numbers and have strong analytical skills.
Research analysts
The role of a research analyst is to provide recommendations for investment actions. These analysts may work for a company or a client. Senior analysts often make investment decisions, while “junior” analysts use data and models to measure the financial risks involved in a particular investment decision. Their job involves analyzing the market for a company or a sector. When evaluating a stock or a company, research analysts must consider both the current and future outlook for that company.
Research analysts work in an environment that promotes independence and confidentiality. To become a research analyst, applicants must complete an advanced degree or an MBA. Senior research analysts may be required to obtain a CIIA or CFA designation. To work in the securities industry, analysts must be registered with the Financial Industry Regulatory Authority (FINRA).
Economic analysts
An economic analyst studies economic data and provides forecasts on the state of the economy. These professionals work for government agencies and for private companies. They often use statistical software and research methods to create forecasts and model economic trends. They also must have a strong knowledge of statistics and math to be successful. These professionals must be able to think critically and make sound, accurate decisions based on the data they analyze. Many analysts specialize in particular industries.
The job description of an economic analyst varies depending on the firm and the type of company. Some are sell-side analysts working for investment banks or asset managers and produce research reports and recommendations for the investing public. Others work for portfolio managers and seek investment opportunities for their own firms. Both types of analysts must have excellent communication skills and possess an understanding of the business and political environments. Many of these analysts have advanced degrees in economics or accountancy.
Technical analysts
A career as a technical analyst can be lucrative, but it requires some education. Most of these professionals earn a bachelor’s degree in economics, accounting, or finance. Graduate degrees in these fields are also useful for career advancement. In addition to a bachelor’s degree, students can look for internship opportunities at financial institutions. These internships will teach them what to expect in the position and help them develop professional networks. This article will discuss some of the most important factors for becoming a technical analyst.
The main objective of a technical analyst is to determine whether a security is likely to increase or decrease in price. These analysts analyze the price movement of a security and apply statistical formulas to determine its direction. This allows them to make sound investment decisions based on the current situation and market conditions. However, technical analysts often combine their work with other forms of market forecasting. For example, John Bollinger advocated rational analysis, which is the intersection of fundamental and technical analysis. This form of analysis overlays technical analysis with fundamental analysis, with the intention of increasing the performance of the portfolio manager.
Commodities specialists
The work of a commodities specialist is a fast-paced one, requiring excellent written and oral communication skills. A typical day will involve liaising with customers, regulatory bodies, and fellow employees. Travel is required to visit various markets. Advancement in this field depends on serving more customers, increasing volume of business, and maintaining a steady and profitable customer base. As a result, the job requires a significant remuneration based on the success of each deal.
A commodity broker buys and sells physical commodities on behalf of investors. This job requires extensive research and market knowledge. Commodities brokers work for brokerage firms and present their research and analysis to managers and clients. Some may even travel to the locations where the commodities are made. A successful commodity broker will have a broad range of experience in the industry. To succeed in this role, an education and training program in business or economics is necessary.
