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Financial Quantitative Analysts

The Job

Financial quantitative analysts study past and current financial reports and investments of their clients or their employers if they work in-house. They gather information about the company's financial status, its income and expenditures, risk tolerance, and financial goals. Analysts also research other companies that their client or employer wants to invest in. They may research companies that are within one industry or various industries, studying the business history, products and services, and past and potential earnings. They use their findings to create financial models, spreadsheets, and reports, to make recommendations for investment options and for buying, selling, or holding onto stocks that may already be in their clients' portfolios.

Financial quantitative analysts work for security and commodity brokerage firms, banks, credit institutions, and insurance groups. They also work for government agencies and in private industries. Their work may focus on any number of industries, including banking, transportation, health care, technology, telecommunications, and energy. Whatever the industry, they use the same analytical tools to come up with investment strategies. They conduct in-depth research on the industry, study the markets and past performance and future trends of investments, and make industry comparisons.

Financial quantitative analysts compile different types of reports, such as profit-and-loss statements and quarterly outlook statements. Their work also entails developing budgets, analyzing cash flow, and performing cost-benefit and risk analyses. Analysts ensure that their client's or employer's investments and investment considerations are tax and regulatory compliant. Companies that plan to sell company shares to investors for the first time (known as "going public") ask analysts for future earnings projections and presentations for prospective investors.  They use various types of software programs to conduct their work, such as analytical software, database user software, development environment software, and operating system software.

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