Stock Broker Jobs: What are earnings opportunities in stock broker jobs

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Stock Broker Jobs Career opportunities

As we all know, funds are the most essential component of resources which are needed for running or expansion of business as well as for development activities that are undertaken by the government. Stocks and shares is a medium to raise funds from the public for the above mentioned purposes. Profits earned by commercial organizations which use the money arranged by these means are shared with the shareholders or investors.

What is Stock Broking?

In order to understand the stock broking, let us first try to understand the basics of the stock exchange or share market. Stock exchange / Share market is a place where securities are bought and sold. It is exposed to a high degree of price fluctuation within minutes, determined by the demand and supply of stocks at a given time. In brief, prices may come down or rise swiftly. Viewed from the angle of long run, one can feel that there is a logic and science attached to it.

What is Stock Market?

Stock market is not only indicator of corporate finance and economic health of any economy but also provides a wealth of experience to wide range to professionals especially with commerce background. The share market is classified into two types – Primary and Secondary. The first one is part of the capital market and deals with the issuance of new securities whereas the latter refers to trading of securities that have already been issued in an initial private or public offering. Alternatively, secondary market can refer to the market for any kind of used goods.

There are two classic market types used to characterize the general direction of the market:

(i) Bear Market – It is one where prices are falling.
(ii) Bull Market – It is one where prices are rising.

Functions of Share Market

In share market the three important functions that are performed are pre-sales, sales and after sales, which involve economists, accountants, financial specialists, financial analysts, industry specialists, capital market specialists, investment and financial planners, etc. Sales and trading (for the security owners), investment banking (for govt. or firms who issue securities), capital market which acts in- between the other two. The Securities and Exchange Board of India (SEBI) protects the interests of investors in securities and promotes the development of, and regulates the securities market through appropriate regulation.

Career Prospects involved in Stock Broking

Stock Broker

A Stock Broker is a qualified and regulated professional who buys and sells securities on behalf of his clients. He makes recommendations on buying and selling stocks based on the interpretation of financial market information provided by analysts. He might work independently, or with the banks, mutual funds, consultancies, insurance companies, pension funds and financial institutions, etc.

Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are generally commerce graduates/economists or a financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for securities. They advise companies on flotations of shares as they are expected to have sound knowledge of capital markets. As of today, stock brokers tasks have become more challenging than ever before. They need to have specialized knowledge and professional acumen to perform their work properly.

Investment Analyst

An investment analyst conducts scientific research and analysis based on expertise and experience to help fund managers manage their investments. He can work as stock broking analysts or as institutional analyst. If you want to be an investment analyst you may specialize in a particular field. The work of an investment analyst includes studying the companies financial reports, assessing various statistical information, estimating demand and supply factors, profitability projections, comparing financial results, visiting the organization, and meeting the management to conclude the final decision.

Apart from having knowledge of subjects like accountancy, economics and statistics, investment analysts with additional knowledge in specific subjects like engineering, biotechnology, pharmacy etc. get an upper edge. Since they have better understanding in these fields, it can be beneficial in making investment decisions in these sectors.

Equity Analyst

In order to make financial investments beneficial and hassle free, an Equity Analyst first collects and reviews financial disclosures of companies, and then carries out research on stocks traded at the stock markets, both national and international. Analyzing financial performance, conducting interviews with officials of the companies, and to make profit projections form part of his work. His daily work also includes monitoring stocks and news and prepares equity research reports.

Most firms recruit freshers as assistant relationship managers (ARMS) and Relationship Managers from noted MBA Institutes.

Personal Skills Required in Stock Broker Jobs

Ability to work independently, confidently and the art to deal with people efficiently.
Good in communication and mathematical calculations (to be comfortable with numbers)
Ability to perform your best under pressure as you have to work in a hectic, pressure, dynamic
Ability and confidence to manage risk
Quick decision making ability
Interest in keeping oneself updated with economic conditions and trends.
Be focused, reliable and well organized
He/She should be able to calculate risks and forecast trends
Ability to build and keep clients’ trust and confidence

Employment Prospects in Stock Broker Jobs

Financial Institutions
Investment management companies
Mutual funds
Investment consultancy
Broker firms
Insurance companies
Merchant banks
Pension funds
Other financial Institutions
Magazines and Newspapers

Remuneration in Stock Broker Jobs

A regional manager with an MBA in finance can draw Rs. 5 lakh to Rs. 8 lakh a year depending on the firm. The salary of an equity research analyst range between 8-15 lakhs p.a. in International firms. He can get promotion as a team leader, a zonal manager and further higher positions.

Education Required in Stock Broker Jobs

A graduate in commerce can pursue the profession of a broker. After graduation, you can go for MBA course. In addition to your business degree, you could arm yourself with a certificate such as NSE’s certification in financial markets and BSE’s certification on derivatives exchange. To attain membership of the stock exchange, one has to go through training under a broking firm for a period of minimum 6 months. The training aims to impart knowledge of subjects like accountancy, law related subjects, capital markets, securities and portfolio analysis, etc. More details about certification can be had from: www.nseindia.com and www.bseindia.com.

Some of the Courses offered in Stock Market: These courses can directly and indirectly help a stock broking professional. For beginners, a degree in commerce and some experience in stock exchange is sufficient.

Basic Course in Equities, Derivatives & Commodities
Diploma in Stock Marketing Trading and Operations
Diploma in Stock Analysis and Portfolio Mgmt.
Foundation Certificate course in Stock Market
Bachelor in Financial and Investment Analysis (BFIA)

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