Chartered Financial Analyst (CFA)

Definition

A Chartered Financial Analyst (CFA) is a professional designation given by the CFA Institute to financial and investment professionals. It signifies expertise in investment analysis, portfolio management, and ethical standards within the finance industry.

5 Must Know Facts For Your Next Test

1. The CFA program consists of three levels of exams that cover areas such as ethics, quantitative methods, economics, financial reporting, and analysis.
2. Candidates must have at least four years of relevant work experience to earn the CFA charter.
3. The CFA designation is highly regarded in fields like asset management, equity research, and financial planning.
4. Passing all three levels of the CFA exam requires a significant time commitment, often averaging around 300 hours of study per level.
5. The CFA Institute also requires members to adhere to a strict code of ethics and professional conduct.

Related terms

Certified Public Accountant (CPA):

A CPA is a professional who has passed the Uniform CPA Examination and met additional state certification and experience requirements.

Financial Analyst: A financial analyst evaluates financial data for decision-making purposes within organizations.

Portfolio Manager: A portfolio manager is responsible for making investment decisions on behalf of clients or institutions based on their financial goals.