A financial analyst is a professional whose job is to assess companies’ financial situations. They are responsible for carrying out in-depth studies of companies in order to assess their future prospects.
The financial analyst uses financial and economic data to generate observations. When completed, they synthesize their findings in a report and provide an investment recommendation.
Analyst recommendations are based on a company’s expected performance and its risk profile. The average of the recommendations of a number of analysts is called a consensus, and usually takes the form of one of the following five categories: Strong buy, Buy, Hold, Sell or Strong sell.
Most financial analysts are employed by brokers who need their expertise to advise their clients.
Synonyms: Investment Analyst, Securities Analyst
A full service broker is a brokerage firm that, unlike discount brokers, offers financial and investment advice. Like discount brokers, they allow their clients to buy and sell stocks, bonds and other financial products. Read more