Equity Analyst at IMC

Can someone explain me the role of an equity analyst at a firm like IMC Trading? 

From what I understand you are not directly linked to P&L and act more as a support function.

Can you still make money in this role or all big bucks will be distributed to quant traders that actually make P&L? 

Last question, what kind of evolution/promotion a good equity analyst could inspire to have?

8 Comments
 

Ah, the life of an equity analyst at a trading firm like IMC! Let's break it down:

  • Role Clarification: An equity analyst at a trading firm typically supports the trading team by providing in-depth research and analysis on various stocks. While they might not be directly trading or linked to the P&L, their insights are crucial for making informed trading decisions.

  • Compensation Structure: As for the money, equity analysts can still earn a good living. Sure, the traders who are directly generating P&L might have more variable compensation, but analysts are compensated for their expertise and contribution to the trading process. This often includes a base salary and potentially a bonus based on performance, which could be tied to the overall success of the team or firm.

  • Career Progression: Now, about climbing the ladder – a talented equity analyst could aspire to become a senior analyst, taking on more responsibility, covering more stocks, or even leading a research team. In some cases, they might transition into a trading role or move up to a portfolio manager position if they show a knack for strategy and decision-making.

Remember, every firm is different, and these paths can vary widely based on the company's structure and the individual's performance and skills. Keep sharpening those analytical tools, and who knows where you'll swing to next on the finance jungle gym!

Sources: Future of Equity Research - 12+ Months into MIFID II, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, What would you like to know about Equity Sales / Research?, CLO Asset Manager, Q&A: I'm an Equity Analyst/PM at an Asset Manager

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

i can only speak of my experience as an analyst in this industry, what i have heard about peers e.g. imc, thru contacts 

 

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