Financial Analysis Jargon Buster
Analyst – A common title to describe someone who conducts financial analysis, usually by studying statistical models, financial documents and market developments. Graduates can start out their careers as trainee analysts or analysts with many professional services, banks and financial institutions.
Buy-side analyst – Also known as ‘buy-siders’, these financial analysts work for investing bodies such as hedge funds, mutual funds, pension funds and trusts that seek out potential investment opportunities.
Chartered Financial Analyst (CFA) – This chartered status has to be obtained by studying for CFA professional qualification. CFAs are members of the CFA Institute.
Data mining – Studying a multitude of databases (which are at time huge!) to interpret and find out information for a specific purpose accordingly.
FAS – Financial Advisory Services. This is usually a division of a bank. Financial analysis forms a part of this.
Sell-side analyst – On the other side of the analyst coin, ‘sell-side analysts’ work for brokerage firms on the lookout for potential investment opportunities to recommend to institutional investors.
Quants – The industry nickname for quantitative analysts – the guys who use statistical modelling and mathematics to find patterns in data, develop risk strategies and computer software.