Financial data providers for financial analysis are software platforms that provide a huge amount of useful information about financial markets and public companies so that financial analysts can use them to perform their analysts more accurately. For example, these databases contain information about past data and forecasts to perform financial models, macroeconomic information, industry statistics, company news, real-time market data, and much more.
At the moment, there are four major data providers: Bloomberg, Thomson Reuters Eikon, Capital IQ, and FactSet. All of them offer licenses that cost around 10,000 to 30,000 per year, though they also offer some discounts in case you buy several annual licenses at once.
On the one hand, Bloomberg and Reuters are the databases that have the highest number of users. They are quite useful and well-known and used by portfolio managers, traders, fixed-income analysts, and risk managers. Moreover, the company also offers other services such as financial news and media company through Bloomberg News along with weekly magazines and radio and TV broadcasts.
On the other hand, Capital IQ and Factset use are not as widespread as Bloomberg or Reuters but they are pretty useful for investment bankers and equity research analysts because they offer some transaction screening and auditing tools that the previous ones do not provide. Moreover, these databases also offer some industry data and comparisons and Excel and Power-Point plugins which automate and make more efficient financial modeling and pitchbook tasks.
In case you want to learn the basics of any of them, I recommend the courses offered by Corporate Finance Institute and Bloomberg.com, whose links are the following:
https://www.bloomberg.com/professional/product/bloomberg-market-concepts/
https://courses.corporatefinanceinstitute.com/courses/eikon-essentials
https://courses.corporatefinanceinstitute.com/courses/capitaliq-fundamentals
I hope this post has been useful so that you can choose the data provider you may be more interested in according to your financial analysis roles and tasks. In case you have any questions, you can also contact me via email or social media.
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