What Degree Is Needed for a Junior Financial Analyst?
Junior financial analysts need a bachelor`s degree in business administration, finance, statistics, or economics. A junior financial analyst generally has less than two years of professional work experience. Financial analysts analyze financial data to help individuals and companies make investment decisions. Financial analysts work as buy-side analysts or sell-side analysts. Buy-side analysts help companies make investment decisions while sell-side analysts help individuals, banks and other securities firms sell stocks.
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Education
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A junior financial analyst must have at least bachelor's degree in accounting, business, economics, finance or statistics. Some financial analysts have a graduate degree, such as a Master of Business Administration. Junior financial analysts should have knowledge of accounting procedures and policies, business practices, bond valuation, economics, statistics, options pricing, the corporate budgeting process, risk management and financial analysis methods.
Licensure
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The Financial Industry Regulatory Authority, or FINRA, oversees the licensing and certification of financial analysts. Financial analysts are required to comply with state licensing requirements and must comply with FINRA rules. As part of the licensure application process, junior financial analysts must identify an employer to sponsor their application for licensure.
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Additional Qualifications and Advancement
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Junior financial analysts can obtain the Chartered Financial Accountant, or CFA, designation while completing their undergraduate or graduate studies. The CFA designation requires completion of a bachelor's degree, four years of related work experience and the completion of three examinations offered by the CFA Institute. In addition to academic studies, junior financial analysts must have good problem-solving, mathematical, attention to detail, communication and analytical skills.
Career Outlook and Earnings
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The U.S. Bureau of Labor Statistics expects the growth for financial analysts to grow at a much faster rate than for all other occupations. However, increased competition for financial analyst positions will also occur due to the high rate of compensation in this industry. By 2018, demand for financial analysts will increase by 20 percent. As there are a higher number of applicants than jobs, applicants with an advanced or graduate degree, or CFA designation will have greater prospects. The average income in 2008 ranged from $54,930 to $99,100. Financial analysts may also receive bonuses and other compensation in addition to wages.
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References
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