A:

A Chartered Financial Analyst (CFA) has successfully passed rigorous coursework in the fields of economics, financial analysis, financial accounting, portfolio management and securities analysis. Those who hold the CFA charter are required to adhere to strict guidelines for proper conduct, meaning that a financial advisers who also holds the CFA charter is transparent and trustworthy.

What Is a CFA Charter?

The CFA charter is a professional designation awarded to financial analysts who meet the competency and integrity requirements of the CFA Institute. Financial analysts who seek to hold the CFA charter are required to pass three rigorous tests. In addition, they must complete four years of work experience, spending 50% or more of their time managing assets. They are also required to uphold the code of ethics and standards of the CFA Institute.

How Does the CFA Charter Help Financial Advisers?

The CFA exams are widely regarded as some of the most rigorous and all-encompassing exams in the finance industry. Exam topics cover ethics, quantitative methods such as statistics, economics, financial reporting and analysis, corporate finance, equity investments, fixed income investing, derivatives, alternative investments, portfolio management and wealth planning.

The scope of knowledge required to successfully pass the three CFA exams is so broad that any CFA charter holder who is also a financial adviser has a depth of knowledge unmatched by non-CFA financial advisers. They thoroughly understand every type of investment imaginable and know how to tailor investments to fit clients' specific needs.

Due to the high focus on ethics, a financial adviser who holds a CFA charter is extremely trustworthy and reputable.

RELATED FAQS
  1. How do changes in capital stock illustrate the overall health of a company?

    Understand what capital stock is comprised of. Learn how changes in capital stock illustrate and provide insight into the ... Read Answer >>
  2. What is the difference between a state and a federally chartered credit union?

    Learn how federal chartered credit unions are regulated by the NCUA, while state chartered unions are regulated by their ... Read Answer >>
  3. Do I have to complete all exams within a certain period of time to receive the CFA ...

    According to the CFA Institute, a candidate can take as much time as necessary to complete all three levels of the CFA program.Therefore, ... Read Answer >>
  4. What types of companies hire a chartered financial analyst (CFA)?

    Find out which types of firms typically employ chartered financial analysts, what positions CFAs frequently hold and which ... Read Answer >>
Related Articles
  1. Financial Advisor

    So, You Want to Earn Your CFA?

    Here are some pros and cons to consider before you take the CFA charter plunge.
  2. Investing

    Charter Price Target Upped Ahead of Earnings

    Charter Communications had its PT raised by Guggenheim, which predicts greater market share.
  3. Investing

    Charter Expanding Telecom Services (CHTR)

    After closing the recent acquisitions of Time Warner Cable and Bright House, Charter plans to enter wireless space.
  4. Investing

    What to Expect in Charter Communications Earnings?

    This marks Charter's first financial report since its acquisition of Time Warner Cable and Bright House Networks was approved in May by federal regulators.
  5. Investing

    Charter Beats Q4 Views But Video Subscribers Down

    Charter Communications reports fourth quarter results that beat Wall Street views.
  6. Investing

    TCI: A Big Stock Buyback Is Coming at Charter

    Hedge fund TCI thinks Charter Communications could be a target for Verizon.
  7. Investing

    Charter Shares Rise on Verizon Buyout Talk

    Charter shares gained this week after Verizon's CEO said a deal would make 'industrial sense.'
  8. Personal Finance

    Guide To Financial Certifications

    To find the right financial professional, you have to sift through an alphabet soup of certifications. Here’s a quick guide to six of the most common.
  9. Investing

    Charter Sued Over Internet Speeds by NY's AG

    Charter Communications is being sued by New York's Attorney General over slow internet service.
  10. Personal Finance

    Is the CFA Useful for Corporate Finance?

    The CFA is useful for some job functions, but an MBA may better suit younger workers.
RELATED TERMS
  1. Charter

    A legal document that provides for the creation of a corporate ...
  2. Address Commission

    The fee paid by vessel owners to charterers, the party who owns ...
  3. CFA Institute

    Formerly known as the Association for Investment Management and ...
  4. Security Analyst

    A financial professional who studies various industries and companies, ...
  5. Chartered Alternative Investment Analyst (CAIA)

    A professional designation given out by the Chartered Alternative ...
  6. Chartered Business Valuator - CBV

    A designation offered by the Canadian Institute of Chartered ...
Hot Definitions
  1. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  2. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  3. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  4. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  5. Solvency

    The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a ...
  6. Dilution

    A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur ...
Trading Center