INTRO
Equity research is an interesting and rewarding industry, but it’s not an easy one to break into. If you’re looking to enter the field, this guide will help you get started with everything from defining equity research to considering the kind of company you want to work for in the future. As you read through this guide, remember that your passion and work ethic can compensate for any gaps in your knowledge or experience – just make sure you’re willing to put in the hours necessary to become a success!
What is Equity Research?
Equity research is the process by which a financial institution provides investment advice to its clients. This advice is based off a multitude of factors, including the company’s financials and potential for growth in the future. It also includes evaluation of the company’s performance over the last year and forecasting out to 5 years. The goal is to provide investors with an unbiased opinion on whether they should buy or sell shares of that company.
Why get into it?
Equity research is the process of gathering information about stocks and reporting it to investors. It can be a rewarding career if you enjoy researching, analyzing, and writing. Equity research analysts are paid according to their experience level. Entry-level analysts often make $50k per year while senior analysts can make up to six figures annually.
How to get started?
Now that you have a general understanding of equity research, it’s time to get your hands dirty. There are a lot of different fields within equity research, and they each require their own skill set. Some common ones include fundamental analysis, technical analysis, quantitative analysis and so on. The most important thing is to take your time finding the right path for yourself by exploring the various types of equity research and understand what you are interested in most. You can also find other people with similar interests and get connected with them through online communities or meet-ups in your city.
Things to know before you take the plunge
Before you take the plunge, it is important to understand what equity research entails. Here are some things to know before you start your research-driven career.
Equity research is the process of analyzing and evaluating securities in a company or industry with an eye towards mergers, acquisitions, and other investment opportunities.
You will typically work as an equity analyst at a brokerage firm where you will be responsible for conducting fundamental analysis on stocks, creating reports to share with clients and investors, and advising them on whether or not they should buy/sell securities based on your assessment of the company’s potential value.
There are many different types of equity analysts – covering industries (like semiconductors), sectors (such as healthcare), specific companies, or even small geographic areas.
