Securities analyst

A securities analyst


Securities analysts conduct research to gather and analyse financial, legal, and economic information. They interpret data on the price, stability, and future investment trends in a certain economic area and make investment recommendations and forecasts to business clients.

Securities analysts typically do the following tasks:

  • Conduct in-depth financial analysis of companies, including reviewing financial statements, cash flow, and profitability.
  • Analyze industry trends, market conditions, and competitive landscapes to understand the broader economic context.
  • Utilize various valuation methods, such as discounted cash flow (DCF) and comparable company analysis (CCA), to determine the intrinsic value of securities.
  • Develop and maintain financial models to project future performance and assess investment risks.
  • Create earnings forecasts and financial projections for companies under consideration.
  • Provide investment recommendations based on analysis, presenting findings to clients or portfolio managers.
  • Evaluate risks associated with specific securities and potential impact on investment portfolios.
  • Keep abreast of market developments, economic indicators, and regulatory changes affecting securities.
  • Communicate analysis findings and investment strategies to clients, fund managers, or internal stakeholders.
  • Ensure adherence to legal and regulatory requirements in securities analysis.

Other titles

The following job titles also refer to securities analyst:

securities research director
shares analyst
corporate securities research analyst
securities research analyst
rating analyst
bonds analyst
stock analyst

Working conditions

Securities Analysts typically work in financial institutions, investment firms, or asset management companies. The role involves a combination of office work, collaboration with various teams, and adherence to tight deadlines, especially during earnings seasons and market events.

Minimum qualifications

A bachelor’s degree in finance, economics, accounting, or a related field is commonly required for Securities Analyst positions. Many analysts also hold advanced degrees, such as a Master’s in Business Administration (MBA) or relevant certifications like Chartered Financial Analyst (CFA). Strong analytical skills, attention to detail, and proficiency in financial modeling tools are essential. Practical experience gained through internships or entry-level positions in financial analysis contributes to the development of Securities Analysts. Continuous learning, staying updated on market trends, and obtaining relevant certifications contribute to the ongoing success of professionals in this challenging and dynamic field.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Securities analyst is a Skill level 4 occupation.

Securities analyst career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to securities analyst.

investment analyst
actuarial consultant
investment fund management assistant
dividend analyst
investment fund manager

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of securities analyst.

  • Financial products: The different types of instruments that apply to cash flow management that are available on the market, such as shares, bonds, options or funds.
  • Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is to raise capital and hedge risk in financial markets.
  • Economics: Economic principles and practices, financial and commodity markets, banking and the analysis of financial data.
  • Financial markets: The financial infrastructure that permits trading securities offered by companies and individuals governed by regulatory financial frameworks.
  • Stock market: The market in which shares of publicly held companies are issued and traded.
  • Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.
  • Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.
  • Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.

Essential skills and competences

These skills are necessary for the role of securities analyst.

  • Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
  • Develop investment portfolio: Create an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natural and technical disasters.
  • Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
  • Advise on investment: Assess the customer’s economic goals and advise on possible financial investments or capital investments to promote wealth creation or safeguarding.
  • Analyse economic trends: Analyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.
  • Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
  • Consult information sources: Consult relevant information sources to find inspiration, to educate yourself on certain topics and to acquire background information.
  • Monitor stock market: Observe and analyse the stock market and its trends daily to gather up-to-date information in order to develop investment strategies.
  • Collect financial data: Gather, organise, and combine financial data for their interpretation and analysis in order to predict possible financial scenarios and the performance of a company or project.
  • Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover those risks.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of securities analyst. However, mastering this knowledge allows you to have more opportunities for career development.

  • Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, and private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
  • Financial statements: The set of financial records disclosing a company’s financial position at the end of a set period or of the accounting year. The financial statements consist of five parts: the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), and the statement of cash flows and notes.
  • International financial reporting standards: The set of accounting standards and rules aimed at companies listed in the stock exchange that are required to publish and disclose their financial statements.
  • Statistics: The study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments in order to forecast and plan work-related activities.
  • Commercial law: The legal regulations that govern a specific commercial activity.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of securities analyst. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Perform stock valuation: Analyse, calculate and appraise the value of a company’s stock. Use mathematics and logarithms to determine the value in consideration of different variables.
  • Provide cost benefit analysis reports: Prepare, compile and communicate reports with broken-down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment in advance over a given period of time.
  • Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
  • Interpret financial statements: Read, understand, and interpret financial statements’ key lines and indicators. Extract the most important information from financial statements depending on the needs and integrate this information in developing the department’s plans.
  • Communicate with banking professionals: Communicate with professionals in the field of banking in order to obtain information on a specific financial case or project for personal or business purposes or on behalf of a client.
  • Examine credit ratings: Investigate and look for information on the creditworthiness of companies and corporations provided by credit rating agencies in order to determine the likelihood of default by the debtor.
  • Advise on financial matters: Consult, advise, and propose solutions about financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
  • Liaise with board members: Report to the management, boards of directors and committees of an organisation.
  • Consult credit score: Analyse the credit files of an individual, such as credit reports which outline a person’s credit history, in order to assess their creditworthiness and all the risks that would be involved in granting a person a loan.
  • Present reports: Display results, statistics and conclusions to an audience in a transparent and straightforward way.
  • Liaise with managers: Liaise with managers of other departments, ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.
  • Forecast economic trends: Gather and analyse economic data in order to predict economic trends and events.
  • Handle financial transactions: Administer currencies, financial exchange activities, deposits, and company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

ISCO group and title

2413 – Financial analysts

  1. Securities analyst – ESCO
  2. Featured image: By Vicente2122 – Own work, CC BY-SA 4.0
Last updated on December 27, 2023