What Is a Capital Market Analyst?

Capital markets are the places where those who have the capital (retail and institutional investors) meet those who seek capital (such as corporations and governments). The stock and the bond markets are examples of some of the most liquid capital markets, where investors trade thousands of securities daily, both on primary and secondary markets.

In primary markets, institutional investors buy securities directly from the issuing firm. For example, mutual funds and hedge funds can buy shares in businesses going public through an IPO (initial public offering). In secondary markets, such as NYSE or Nasdaq, investors trade securities that have already been listed.

Investment Banking Areas Explained: Capital Markets

What do capital market analysts do?

Capital market analysts collect, interpret and communicate data for the development of market reports and strategic recommendations on particular securities for their organizations. They also create financial models that communicate market trends and factors that can affect a companys investments in capital markets. During the workday, a capital market analyst may commonly perform the following tasks:

What is a capital market analyst?

A capital market analyst is a financial analyst whose career focus is analyzing, evaluating and monitoring financial data to support companies that buy and sell securities within capital markets. A capital market is a financial market where institutional investors (like retailers) purchase asset shares from companies or governments trying to raise capital.

The stock exchange is an example of a capital market, where companies can invest in instruments like mutual funds, hedge funds and other securities. Capital market analysts are the financial analysts responsible for tracking, analyzing and interpreting data about available securities, prices and market activities. Analysts use this information to help companies make decisions about investment activities, financial risk mitigation strategies and business development plans.

Career requirements

Most employers require capital market analysts to have at least a bachelors degree, but some may require a masters degree. Additionally, many analysts hold professional certifications. The following career requirements can provide insight into what you need to become a capital market analyst:

Education

Most analysts enter their careers with a bachelors degree in finance, accounting, statistics, data analytics, economics or another related field. No matter the financial field you choose to earn your degree in, its important to ensure the program you attend focuses on coursework like data analysis, statistics, business management, sales and trading, commercial banking, wealth and asset management, financial policy and compliance and risk management so you can build the skills necessary for your career.

Although you can start your career with your four-year degree, some employers may prefer analysts to have a graduate degree. A masters degree in financial analysis, investment banking, international and commercial banking, economics or another related field. Since a career as a capital market analyst focuses heavily on data analytics, statistics and financial knowledge, prospective capital market analysts often pursue degrees in these fields.

Certifications

Many employers may also require capital market analysts to hold licensing or professional certifications. Consider earning a professional certification that demonstrates your expertise and qualifications in your field, such as the Capital Markets and Securities Analyst credential (CMSA certification). Another option is to obtain your Chartered Financial Analyst certification (CFA for short) through the FINRA, which is the regulatory body that oversees all activities within stock exchanges and capital markets.

Obtaining professional licensing can show employers your motivation to advance your skills and financial knowledge and showcases your qualifications for performing the complex functions of a capital market analyst. Keeping your certifications current can also show employers your initiative for staying up-to-date on financial regulations, legislation and your license requirements.

Training

Many prospective analysts complete an internship during their education programs, where they apply the skills they learn in the classroom to projects they complete in professional settings. Consider internships with companies that operate within capital markets so you can develop important skills to succeed in your career. Its also possible to receive on-the-job training in an entry-level position (like a junior analyst) after you complete your bachelors degree. As you gain experience you can advance your career into higher-level roles or pursue your masters degree to enhance your qualifications and boost your earning potential.

Career advancement

Many capital market analysts choose to complete continuing education in order to comply with licensing requirements, financial regulations and changes to financial procedures. Participating in continuing education opportunities like training workshops or certification courses can help you strengthen your skills, learn new applications and hone your industry knowledge. Taking part in activities like these can demonstrate your motivation to develop in your career, resulting in advancement opportunities like promotions, bonuses, rewards or other initiatives from employers. Many analysts may also pursue additional certifications or credentials that demonstrate in-depth expertise, which can lead to management roles, higher income levels and other advancement opportunities.

FAQ about being a capital market analyst

Consider the frequently asked questions below for additional insight into working as a capital market analyst:

What is the work environment like for capital market analysts?

Capital market analysts often work in corporate settings, including investment firms, commercial banks, brokerage firms and wealth management institutes. They often work during traditional business hours, however, many analysts may take on complex projects that require additional working hours in the evenings, over weekends and sometimes during holidays. Analysts also work primarily with computer applications, viewing capital market indices, analyzing charts and algorithmic data and building analytical reports.

How much do capital market analysts make?

What skills do capital market analysts need for career success?

Capital market analysts rely on both technical skills and transferable skills like communication, interpersonal, teamwork, problem-solving and critical thinking skills. Technical skills are necessary to perform many of the essential job functions of the role, including analyzing market data, using software to build statistical models and organizing and interpreting financial data through software applications. Consider developing your technical skills in finance, statistics and financial and computer modeling to demonstrate your technical expertise.

Your soft skills are also highly important in the role, as analysts work as part of a larger finance team to support company goals and profitable outcomes. Many analysts also rely on negotiation skills to agree on transactions, develop contracts and build relationships with shareholders, investors and clients.

FAQ

What do capital markets analyst do?

Capital market analysts collect, interpret and communicate data for the development of market reports and strategic recommendations on particular securities for their organizations. They also create financial models that communicate market trends and factors that can affect a company’s investments in capital markets.

What is a job in capital markets?

Capital market jobs are positions in investment banks that facilitate the sale and management of funds in various markets, including stock exchanges, management of public offerings, and various types of bonds. Generally, capital market jobs can be broken into two broad categories: sales/trading and origination.

What do you mean by capital market?

Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.

What are the 3 types of capital market?

Capital market is a broad term used to describe the in-person and digital spaces in which various entities trade different types of financial instruments. These venues may include the stock market, the bond market, and the currency and foreign exchange markets.

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