What's a financial analyst and how much do they make?

Question

What's a financial analyst and how much do they make?

Answer 1

Here is how the Bureau of Labor Statistics defines financial analyst:

Financial analysts assess the economic performance of companies and industries for firms and institutions with money to invest. Also called securities analysts and investment analysts, they work for investment banks, insurance companies, mutual and pension funds, securities firms, the business media, and other businesses, helping them make investment decisions or recommendations. Financial analysts read company financial statements and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company’s value and to project its future earnings. They often meet with company officials to gain a better insight into the firm’s prospects and to determine its managerial effectiveness.

Here is what BLS says they make:

Median annual earnings, including bonuses, of wage and salary financial analysts were $66,590 in May 2006. The middle 50 percent earned between $50,700 and $90,690. The lowest 10 percent earned less than $40,340, and the highest 10 percent earned more than $130,130. The bonuses that many financial analysts receive in addition to their salary can be a significant part of their total earnings. Usually, the bonus is based on how well their predictions compare to the actual performance of a benchmark investment.

For more info, see here:

http://www.bls.gov/oco/ocos259.htm