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CAREER AS STOCK BROKER Introduction
Stock exchanges to some extent play an important role as indicators,
reflecting the performance of the country's economic state of health.
Stock market is a place where securities are bought and sold. It is
exposed to a high degree of volatility, prices fluctuate within minutes
and are determined by the demand and supply of stocks at a given time.
Stock brokers are the ones who buys and sells securities on behalf of
individuals and institutions for some commission.
The Securities and Exchange Board of India (SEBI) is the authorised body
which regulates the operations of stock exchanges, banks and other
financial institutions. The past performances in the capital markets
specially the securities scam by Harshad Mehta has led to tightening of
the operations by SEBI. In addition the international trading and
investment exposure has made it imperative to better operational
efficiancy. With the view to improve, discipline and bring greater
transparency in this sector, constant efforts are being made and to a
certain extent improvements have been made.
As the condition of capital markets are constantly improving, it has
started drawing attention of lot more people than before. On the career
related aspects, professionals have opportunities to choose from for a
wide range of jobs available in a number of organisations in this sector
and one can expect to have good times ahead of him.
Nature of Work
In India capital markets are experiencing radical reformation. The
stricter regulatory framework alongwith introduction of information and
technology has added more professionalism to the industry. The most common
areas of work in the capital markets, one can look forward to include the
following.
STOCK BROKERS: Given the present complex situation of our
capital markets, stock brokers have to face challenging tasks. The
specialized knowledge and professional acumen required has made the job of
brokers highly skillful. The work of stock brokers depends upon the kind
operations they engage themselves into. Some of the brokers like to
practice with individual clients while others work for institutions.
Brokers who work for institutional investors are often called securities
traders. Many prefer to work as dealers, advisors and securities analysts.
Security analysts are those who advise companies on floatations of shares
as they are expected to have sound knowledge of capital markets. Brokers
also work in the financial sector with banks, mutual funds, consultancies,
insurance companies, pension funds and financial institutions etc.
INVESTMENT ANALYSTS: Investments in todays capital markets
is not something which can always fructify, based on mere guesses. It
requires thorough scientific research and analysis to make something out
of it. Investment analysts are those who carry out the very same job and
help fund managers manage their investments. They can work as stock
broking analysts or as institutional analysts. The expertise and
experience, though it varies from individual to individual, in the subject
of capital markets makes them suitable to handle high value investment
decisions of merchant banks, insurance and pension funds and other
financial institutions. With diversification of financial sector into vast
and complex fields, investment analysts usually specialize in a particular
field so that they can give their best.
The work of investment analysts include studying the companies financial
reports, assess various statistical information, estimate demand and
supply factors, profitability projections, compare financial results,
visit the organisaton, meet the management, survey the industry as a whole
and on the basis of the available information, finally conclude to a
decision.
EQUITY ANALYSTS: Investment markets all over the world are
witnessing major changes. Indian markets are no exception. The amount of
professionalism and complexity of financial markets has led to the
adoption of most advanced techniques and approach while dealing in
securities. Increasing presence of both domestic and foreign players in
the indian markets have further added to the demand for having a more
systematic approach. Therefore arose the need for professionals who can
specialize in the fields of capital markets. Equity analyst is one such
specialist who does research and helps in systematic and better financial
investments. Given the prevailing market conditions, equity analysts are
in for favourable times ahead. There work is quite similar to that of
investment analysts. The job mainly involves research activities apart
from analysing financial performance, making profit projections,
conducting interviews with the executives of c! ompanies, making field
visits and market research, etc.
Personality
To deal and attend to different kinds of people is something which
everybody cannot handle with ease and tact. As brokers' job includes
handling similar situations, they need to have a well groomed personality
and a knack to convince people. Patience is something, they cannot afford
to lose as it can adversely affect their clientele. Good communication
skills also count when dealing with a variety of people.
Technical aspects of the job of brokers, investment and equity analysts
are almost similar and asks for sharp memory, analytical mind, foresight
and logical approach to make projections, ability to withstand mental
stress and handle complex situations as capital markets are highly
susceptible to ups and downs.
Professional Courses
A graduate in commerce can pursue the profession of a broker. To attain
membership of the stock exchange, one has to go through a 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.
Apart from having knowledge of subjects like accountancy, economics and
statistics, investment analysts having additional knowledge in specific
subjects like engineering, biotechnology, pharmacy etc. adds to their
advantage. Since they have better understanding in those fields, it can be
beneficial in making investment decisions in those sectors.
Those thinking of a career as equity analyst can pursue the postgraduate
diploma course in Equity Rearch and Analysis offered by The Institute of
Chartered Financial Analysis of India situated at Hyderabad, India.
COURSES
Post-graduate membership course in capital market and financial
services.
One-year Post-Graduate Diploma in fundamentals of capital market
development.
Certificate Courses
Chartered Financial Analyst Equity Research
INSTITUTES OFFERING COURSES
Major Institutes offering Courses on Stock Broking
are -
Bombay Stock Exchange's BSE Training Institute, Mumbai
Institute of Capital Market Development, 1965 Arya Samaj Road, Karol Bagh,
New Delhi - 05
All India Centre for Capital market Studies, J.D.C Bytce Institute of
Management Studies and Research, Nashik - 05
Institute of Company Secretaries of India, New Delhi
Institute of Financial and Investment Planning, B/303,Ventex Vikas,
M.V.Road, Andheri(E) Mumbai 69
Institute of Chartered Financial Analysts of India (ICFAI), Road No.3,
Banjara Hills, Hyderabad 34
The Orion Institute of Capital Market, S- 11, Adarshini Plaza, 91, Adchini,
Aurobindo Marg, New Delhi
The UTI Insitute of capital Market, Plot 82, Sector - 17, Vashi, Navi
Mumbai - 400 705
COMPARATIVE CHART
OF INSTITUTES
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