How Do I Become a Capital Market Analyst?

K. Kinsella
K. Kinsella
Businesswoman talking on a mobile phone
Businesswoman talking on a mobile phone

Someone wishing to become a capital market analyst must typically possess a college degree and have some knowledge of the financial markets. Analysts are responsible for reviewing data related to financial transactions, securities trading, marketable instruments and the accounts of particular firms. Consequently, anyone wishing to become a capital market analyst must have good analytical skills and the ability to make recognize trends and patterns in financial data.

Analysts are normally employed by investment firms and major banking corporations. Many of the entities actively recruit college graduates by arranging job fairs at university campuses. Due to the nature of the work, someone wishing to become a capital market analyst should ideally complete an undergraduate degree in finance, economics or a related topic. Some companies also require job applicants to have completed a postgraduate degree and many firms prefer to hire individuals who attended the most prestigious colleges.

Investment firms often arrange internships for college students and in many instances, these internships lead to permanent job offers. Students typically have to have to have above average grades to be considered for internships and firms often prefer to hire interns who have prior experience working for banks, insurance firms or other types of entities that operate within the financial sector. Interns work alongside experienced analysts and gain an insight into the day-to-day activities of these professionals. Some analysts allow interns to prepare reports and review financial information and permanent jobs are normally offered to the individuals who perform best during internships.

Since analysts are tasked with monitoring securities trading, many investment firms prefer to fill these jobs with individuals who have some prior investment experience. In most countries, people can only work for investment firms if they have successfully passed securities licensing exams, and some investment firms offer analyst positions to in-house brokers. Beyond actual trading experience, someone wishing to become a capital market analyst must at least display a broad knowledge of the mechanics of these markets and the methods through which firms raise money.

Capital markets rely on cash infusions from investors located throughout the world and analysts sometimes have to contact overseas investment representatives to gather information on bond offerings and other types of securities. Some firms require applicants for analyst jobs to have undergone some kind of formal second language instruction. Additionally, analysts are relatively well compensated individuals and as with most investment firm employees, anyone wishing to become a capital market analyst must pass a background check. Depending on local and national privacy laws, this can mean that people with past criminal convictions or even poor credit scores are often overlooked for these positions.

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