There are four steps required to become an equity research analyst: post-secondary training, related work experience, research skills, and completing the job interview process. An equity research analyst spends his time reviewing data regarding financial transactions surrounding equity in property or financial instruments. This job is very similar to financial, securities, or investment analysts.
People who have an analytical thought process, enjoy working independently, and are comfortable exploring multiple scenarios find the greatest satisfaction in this type of work. The most important skill for an equity research analyst is data manipulation and management. Attention to detail, discipline, and focus are all essential for anyone who wants to work as an equity research analyst.
The first requirement to become an equity research analyst is to complete a post-secondary education program. Although many firms will accept a college diploma in accounting for an entry-level analyst assistant position, the vast majority of investment and banking firms prefer a university degree for their analysts. The degree can be in accounting, math, business, statistics, or a related field.
Related work experience includes financial analyst, statistician, finance officer, or accounting. These jobs all use both computer software analysis programs and statistical programs. Analyst positions are typically mid-career, with limited opportunities available to new graduates.
Research skills are essential in this role. These skills are often taught through courses available in the humanities or information studies programs. Optimal research skills provide the appropriate methodology for quick data retrieval, correct citation of sources, and the ability to find the best resources for a particular idea.
When applying for a job to become an equity research analyst, be sure to proofread your resume and cover letter, double checking for any grammar or spelling mistakes. It is becoming increasingly common for equity research firms to require a credit and criminal records check as part of the application process. Keep this in mind when applying.
During the job interview process, most employers have a standard list of questions for those who want to become an equity research analyst, and they are looking for complete, concise responses. Remember that everything you say will be written down and reviewed. Think about your answers, stay calm, and be sure to answer the question that was asked.
In order to advance your career to a management or supervisory level, additional formal training is usually required. This often include a master's degree in statistics or finance. Many people remain as analysts for their entire careers, either expanding their role within the finance industry, or branching out to other related industries. Options for an equity research analyst include accounting analysts, data management, or working for a software company.