Financial analyst

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In his or her professional capacity, a financial analyst is responsible for doing financial analysis for external or internal customers as a primary function of the work. For example, securities analyst, research analyst, equities analyst, investment analysts and ratings analysts are all possible titles for this position. While the job title is wide, there are many different analyst-roles that involve financial management and (credit) risk management, as opposed to concentrating just on investments and valuation; they are also explored in further detail later in this article. Most people do not consider quantitative analysts, sometimes known as "quants," to be included in the definition of "financial analyst."

Financial analysts work with a variety of organisations, including mutual and pension funds, hedge funds, securities firms, banks, investment banks, insurance companies, and other enterprises, advising them on investment choices and assisting them in making such decisions. Corporate financial analysts are responsible for budgeting, revenue and cost modelling, and analytics as part of their job duties. In addition, credit analysis is a discrete area of responsibility.

In order to evaluate financial data, identify patterns, and make projections, financial analysts almost always utilise spreadsheets (and statistical software programmes); see Financial modelling for more information. The analyst interacts with corporate leaders on a regular basis in order to obtain a better understanding of a company's prospects and to assess the efficacy of the firm's management.

As previously stated, "quantitative analysts" and "financial analysts" are often regarded as separate from one another. Financial modelling is concerned with derivatives, fixed income analysis, and financial risk management; quantitative finance is concerned with mathematical modelling rather than accounting-related analytics (see Financial modelling, Quantitative finance, and Accounting). At the same time, especially in banking, "quants" are often assigned to the same projects as financial analysts, but they are tasked with dealing with the more mathematically demanding aspects of the projects.