A security analyst otherwise called as financial analyst is a person who works with financial analysis projecting a company's future earnings by observing and doing research and make recommendations to clients on which securities to buy or sell. They also summarize that report with a rating, such as "buy"," sell", "market perform", "overweight", "hold", etc.Securities analysts' reports and recommendations can influence the price of a company's stock. Over the last several years there has been increased concern regarding the changing role of analysts. In order to ensure the integrity of our markets, it is vital that possible conflicts of interest among analysts and their firms be clearly disclosed and understood by the investing public who read those reports. The work of securities analysts include studying the companies financial reports, assess various statistical information, estimate demand and supply factors, profitability projections, compare financial results, visit the organization, meet the management, survey the industry as a whole and on the basis of the available information, finally conclude to a decision. The amount of professionalism and complexity of financial markets has led to the adoption of most advanced techniques and approach while dealing in securities.
Thus securities analyst is a specialist who does research and helps in systematic and better financial investments. Given the prevailing market conditions, security analysts are in for favourable times ahead where it mainly involves research activities apart from analyzing financial performance, making profit projections, conducting interviews with the executives of companies, making field visits and market research, etc.Those who are employed in Commercial lending perform "balance sheet analysis," examining the audited financial statements and corollary data in order to assess lending risks. In a stock brokerage house they read company financial statements and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company's value and project future earnings. They must keep abreast of new regulations or policies that may affect the industry, as well as monitor the economy to determine its effect on earnings.
With a lot of scope for growth and specialization the job offers new challenges everyday and is quite prestigious and well paying too. On the career related aspects, professionals have opportunities to choose from for a wide range of jobs available in a number of organizations in this sector and one can expect to have good times ahead of him.
Analysts can work their way up to become senior financial analysts or associates after 3 or 4 years of work at some firm. They can find employment as
• Investment bankers.
• Investment advisors. Financial consultants.
• Portfolio analysts /Portfolio managers.
Even otherwise also, economic growth and liberalization taking place in the country has opened number of opportunities in various organizations like
• Mutual funds
• Investment consultantancy Broker firms
• Insurance companies
• Merchant banks
• Pension funds
• Financial institutions
• Start their own consultancies
(18 April 1772 - 11 September 1823) was an English political economist, often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. He was also a member of Parliament, businessman, financier and speculator, and amassed a considerable fortune.
Ricardo's theories of wages and profits
Ricardo believed that in the long run, prices reflect the cost of production, and referred to this long run price as a Natural price. The natural price of labour was the cost of its production, that cost of maintaining the labourer. If wages correspond to the natural price of labour, then wages would be at subsistence level. However, due to an improving economy, wages may remain indefinitely above subsistence level:
• Notwithstanding the tendency of wages to conform to their natural rate, their market rate may, in an improving society, for an indefinite period, be constantly above it; for no sooner may the impulse, which an increased capital gives to a new demand for labour, be obeyed, than another increase of capital may produce the same effect; and thus, if the increase of capital be gradual and constant, the demand for labour may give a continued stimulus to an increase of people.
• It has been calculated, that under favourable circumstances population may be doubled in twenty-five years; but under the same favourable circumstances, the whole capital of a country might possibly be doubled in a shorter period. In that case, wages during the whole period would have a tendency to rise, because the demand for labour would increase still faster than the supply.
• In his Theory of Profit, Ricardo stated that as real wages increase, real profits decrease because the revenue from the sale of manufactured goods is split between profits and wages. He said in his Essay on Profits, "Profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food."
Ricardo's publications included:
• The High Price of Bullion, a Proof of the Depreciation of Bank Notes (1810), which advocated the adoption of a metallic currency.
• Essay on the Influence of a Low Price of Corn on the Profits of Stock (1815), which argued that repealing the Corn Laws would distribute more wealth to the productive members of society
• On the Principles of Political Economy and Taxation (1817), an analysis that concluded that land rent grows as population increases. It also clearly laid out the theory of comparative advantage, which showed that all nations could benefit from free trade, even if a nation was less efficient at producing all kinds of goods than its trading partners.
John Maynard Keynes
, 1st Baron Keynes CB (5 June 1883 - 21 April 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. He advocated interventionist government policy, by which the government would use fiscal and monetary measures to mitigate the adverse effects of economic recessions, depressions and booms. He is one of the fathers of modern theoretical macroeconomics. John Maynard Keynes, 1st Baron Keynes CB (5 June 1883 - 21 April 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. He advocated interventionist government policy, by which the government would use fiscal and monetary measures to mitigate the adverse effects of economic recessions, depressions and booms. He is one of the fathers of modern theoretical macroeconomics.
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