What skills does a securities analyst need?

A securities analyst needs 21 essential skills including financial products, quantitative analysis, securities, economics, financial markets. Core competencies include .

Will AI replace securities analyst jobs?

The AI disruption score for securities analyst is 85/100 (very high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

Financial ServicesBusiness and administration professionalsISCO 2413

securities analyst

Securities analysts perform research activities to gather and analyse financial, legal and economic information. They interpret data on the price, stability and future investment trends in a certain economic area and make recommendations and forecasts to business clients.

About securities analyst

As a securities analyst, you will conduct in-depth research on financial markets, companies, and economic trends to provide investment recommendations and forecasts to institutional and individual clients. Your daily work involves analyzing financial data, reviewing company financial statements, evaluating market conditions, and interpreting economic indicators to identify investment opportunities and risks. You will develop and review investment portfolios, track stock market performance, and communicate complex financial information in clear, actionable recommendations. Your analytical expertise and market insights directly influence investment decisions worth millions, making this a role of significant responsibility and intellectual challenge in the financial markets.

Key Work Functions

Core areas of responsibility for a securities analyst.

Financial Research and Data Analysis

Conduct comprehensive research on companies, industries, and economic sectors
Collect and analyze financial data from multiple sources and databases
Review and interpret company financial statements, earnings reports, and disclosures
Consult information sources including market databases, news, and financial publications

Investment Analysis and Portfolio Management

Perform fundamental and quantitative analysis to evaluate securities and investments
Develop and optimize investment portfolios aligned with client objectives and risk tolerance
Review and rebalance existing investment portfolios to maintain strategic allocations
Apply modern portfolio theory and asset allocation models

Market and Economic Analysis

Monitor and analyze stock market trends, price movements, and trading volumes
Analyze economic trends, macroeconomic indicators, and geopolitical developments
Evaluate financial products, markets, and asset classes for risk and return potential
Identify emerging market trends and investment opportunities before competitors

Investment Recommendations and Reporting

Develop detailed investment recommendations with clear rationale and risk assessments
Prepare research reports and investment theses for institutional and individual clients
Present findings and recommendations to clients through presentations and meetings
Provide actionable investment advice based on quantitative and qualitative analysis

Securities and Risk Analysis

Evaluate specific securities including stocks, bonds, derivatives, and mutual funds
Perform actuarial science calculations and valuation models (DCF, P/E multiples, etc.)
Assess credit risk, market risk, and liquidity risk of securities and portfolios
Monitor and track portfolio performance against benchmarks and objectives

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (21)

financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.quantitative analysisquantitative analysisThe technique of employing statistical and mathematical modelling and measurement to represent a specific reality through numbers.securitiessecuritiesThe financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities whic...economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.fundamental analysisfundamental analysisThe techniques for measuring the intrinsic value of a financial security through the assessment its economic and financial factors. It combines together the analysis of macroeconomic trends and of fin...asset managementasset managementThe process of increasing total wealth over time through investments that have potential to grow in value.stock marketstock marketThe market in which shares of publicly held companies are issued and traded.modern portfolio theorymodern portfolio theoryThe theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing t...investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.advise on investmentadvise on investmentAssess the customer's economic goals and advise on the possible financial investments or capital investments to promote wealth creation or safeguarding.analyse economic trendsanalyse economic trendsAnalyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.consult information sourcesconsult information sourcesConsult relevant information sources to find inspiration, to educate yourself on certain topics and to acquire background information.monitor stock marketmonitor stock marketObserve and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.collect financial datacollect financial dataGather, organise, and combine financial data for their interpretation and analysis in order to predict possible financial scenarios and performance of a company or project.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

Optional (20)

cryptocurrencycryptocurrencyDigital and encrypted currency or medium of exchange with decentralized network grounded on blockchain technology, since the value of the cryptocurrency is not managed or maintained by central authori...banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...international financial reporting standardsinternational financial reporting standardsThe set of accounting standards and rules aimed at companies listed in the stock exchange which are required to publish and disclose their financial statements.Monte Carlo simulationMonte Carlo simulationA mathematical technique used to predict, estimate, and analyse a range of future possible outcomes for an uncertain event. The process is performed through a simulation to estimate a range of values.statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...commercial lawcommercial lawThe legal regulations that govern a specific commercial activity.perform stock valuationperform stock valuationAnalyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.provide cost benefit analysis reportsprovide cost benefit analysis reportsPrepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment i...create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...examine credit ratingsexamine credit ratingsInvestigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.liaise with board membersliaise with board membersReport to the management, boards of directors and committees of an organisation.consult credit scoreconsult credit scoreAnalyse the credit files of an individual, such as credit reports which outlines a person's credit history, in order to assess their creditworthiness and all the risks that would be involved in granti...present reportspresent reportsDisplay results, statistics and conclusions to an audience in a transparent and straightforward way.liaise with managersliaise with managersLiaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.forecast economic trendsforecast economic trendsGather and analyse economic data in order to predict economic trends and events.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.investment bankinginvestment bankingThe branch of banking that provides services of capital raising and mergers and acquisitions (M&A).