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Investment Analysts

THE JOB

INVESTMENT ANALYSTS work in the field of investment securities.  Sometimes 
they are called Securities Analysts or Financial Analysts.  Their services 
are required by investment brokers, banks, pension funds, investment banking 
firms, investment management and counseling firms, and insurance companies.  
The analyst's job is to make assessments of the economic performance of 
individual firms or whole industries and to make investment recommendations.

Investment Analysts must stay current in the fields of industrial technology,
business, finance, and economic theory.  They assess complex technical data 
and present written and oral reports.  Acting in the capacity of economist, 
financial detective, and forecaster, analysts help direct much of the 
professionally managed capital of this country.

In the Research department of a brokerage house, bank, or insurance company, 
Investment Analysts produce reports on general economic trends, individual 
corporations, and entire industries to advise the firm's representatives and 
clients in investment decisions.  They present comparisons of the various 
securities of a given industry and develop opinions regarding their relative 
quality.  Also, the current market price of a security is evaluated in terms 
of its value as an investment.  Some of the factors involved are historical 
and subject to statistical measurement; other factors require the exercise of
judgment in weighing intangibles, including the changing psychology of the 
investing public.

In making a detailed study of a company, analysts determine the economic 
position of the entire industry, how it is affected by new products, new 
processes, and competition.  They summarize the financial position of the 
company, analyze past experience, review dividend records, note capital 
structure and comment on managerial effectiveness.  Often the analysts strive
to uncover hidden meanings in balance sheets and other financial reports.  
Finally, they develop a recommendation on the investment status of the equity.

Investment Analysts in an underwriting house must prepare a complete 
financial picture on companies before their firm undertakes the financing of 
them.  After the underwriting house is convinced of a company's soundness, 
the analysts recommend the types of equities that will best suit the 
company's needs and will also be attractive to the investing public.  They 
then determine the price at which the security should be syndicated and 
offered to the public.


WORKING CONDITIONS

Financial Research staffs usually work in offices which are located in the 
larger metropolitan areas.  Central to the job is the exchange of information
between people, frequently under considerable pressure from time constraints.
In a brokerage firm the analysts' workdays are peppered with telephone calls 
from sales agents and the public, and pressure mounts as the stock market 
activity increases.  They have reference materials close at hand, but as time
is of the essence, answers must be quick as well as accurate.

In order to keep well informed, Investment Analysts are obliged to visit 
firms, interview their management teams, and observe organizational processes
and operations.  Usually the analysts must relegate the endless reading of 
background materials that is demanded by the job to after office hours, 
extending the workweek considerably.

Investment Analysts are accorded professional standing and permitted 
identification as Chartered Financial Analysts after passing a series of 
examinations.  They then can become members of the Association for Investment
Management and Research which has affiliate societies or chapters in Los 
Angeles, San Francisco, Sacramento, and San Diego.  The association is 
responsible for certifying financial analysts, providing continuing education
for its members, maintaining its ethics and professional conduct program, 
serving as an advocate for its memberships and clients, and providing 
services for its members and local societies and chapters.


EMPLOYMENT OUTLOOK

The following information is from the California Projections of Employment 
published by the Labor Market Information Division.

Estimated number of workers in 1990             3,680
Estimated number of workers in 2005             4,420
Projected Growth Percentage                       20%
Estimated openings due to separations By 2005     830

(These figures do not include self-employment nor openings due to turnover.)

A projected increase of over 700 new jobs combined with the estimated 830 
workers leaving the labor force will result in nearly 1,500 net job openings 
in California by the year 2005.


WAGES, HOURS, AND FRINGE BENEFITS

The low wage range for Investment Analysts is between $29,000 and $36,000 a 
year.  The high annual wage range is between $50,000 and $64,000 and some of 
the more experienced analysts may earn an annual salary of $100,000 or more. 
The earnings in the higher range usually represent a combination of salary 
and bonuses awarded in recognition of business brought into the firm.

Investment Analysts work a regular 40 hour week, and receive the usual 
benefits such as vacation pay and medical insurance.


ENTRANCE REQUIREMENTS AND TRAINING

For trainee positions, employers require a Bachelor's degree in business 
administration, finance, or economics, and most specify that they prefer 
applicants with a graduate degree in business administration.  The applicant 
will have enhanced employment opportunities if he or she is a good student 
and is active in a variety of extracurricular activities.

College students should prepare for this profession by taking several courses
in investments, finance, economics, accounting, and banking.  Experience 
gained from participating in an internship program with a financial 
institution can also provide valuable experience and exposure to the 
industry.

Personal characteristics which are indispensable to Investment Analysts 
include the ability to remember details and an intense motivation for seeking
out obscure information.  Analysts must be able to work independently and to 
make sound analyses of the general dynamics of the economy.

Analysts must be familiar with accounting methods, the operation of the money
market, and tax regulations as they affect business, and security 
transactions.  They need communications skills to make verbal as well as 
written presentations.  The job requires initiative, resourcefulness, and 
tact.


ADVANCEMENT

From the time of entry on the job, the qualified analyst is progressively 
delegated additional responsibilities, and advances accordingly.  An analyst 
can gain national recognition by becoming a specialist in one industry.  Some
become so familiar with an industry that they are offered management 
positions in the industry.  The analyst's success is measured by the ability 
to evaluate stock market trends accurately.


FINDING THE JOB

Investment Analysts find jobs by directly applying to employers, contacting 
the placement centers maintained by colleges and universities, Researching 
the classified section of local and financial newspapers, or by registering 
with the Workforce Services Offices of the California Employment Development 
Department.


ADDITIONAL SOURCES OF INFORMATION

Association for Investment Management and Research 
P.O. Box 3668
Charlottesville, VA  22903
(804) 977-6600


RELATED OCCUPATIONAL GUIDES

Securities Brokers            No. 252


OCCUPATIONAL CODE REFERENCES

DOT (Dictionary of Occupational Titles, 4th ed., Rev. 1)
Investment Analyst                           160.267-026

OES (Occupational Employment Statistics) System
Financial Analysts, Statistical                   253150

Source:  State of California, Employment Development Department, Labor
         Market Information Division, Information Services Group,
         (916) 262-2162.