An Equity Analyst is someone who studies and analyzes financial information and trends for an organization or an
industry. An equity research analyst reviews stocks, bonds, and other financial instruments and writes an unbiased,
honest equity research report. They writes reports on the organization’s finances and defines the business’s
investment potential by giving financial ratings, like buy, sell, or hold. They is also accountable for analyzing the
financial budget and making a strategy to get out of debt, if the organization is in a poor financial state. They
typically use technical analysis or fundamental analysis to report, which securities or stocks are expected to be
profitable and which are not.
As an Equity Analyst, their work would typically include reviewing of the annual statements (the balance sheet, the
profit and loss statement, the cash flow statement, the notes to accounts, etc.), revenue figures and future
projections, intelligence concerning key clients, amount of debt the company is carrying, any legal liabilities, present
market trends, and the products or services presented by the firm. After studying all this in detail and analyzing the
data, they will have to prepare a crisp but detailed equity research report, which will help your clients take optimal
decisions about their investments.
Most Equity Researchers are assigned a certain group of companies that they are expected to follow. They must note
down all their findings and then present them in a simple manner to all their clients in the form of formal
presentations and reports. However, there are many equity researchers who choose to specialize, not any in group
of companies or a particular industry, but in fact in studying the contemporary market conditions. They study how
external pressures can impact investments in a particular region.
People who work as equity researchers work in offices all day long five days a week. They normally work typical
office hours from 9am till 5pm. Live in the career involves conducting extensive research and so people in this
profession spend a lot of their time everyday sifting through paperwork and in front of a computer screen. There is
little traveling or leaving the office during work hours in the life of an equity researcher.
Entry Level Education
- Bachelor's Degree, preferably in a relevant business discipline such as Finance, Accounting, Economics or
- Master's Degree in Business Administration or Finance.