Cha-Ching! That is the only sound that comes to our mind when we hear the word stock market and for good reasons.
There’s a lot and we mean a lot of money-making potential in the stock market.
The equity market has opened the doors to many opportunities for Sensex and nifty enthusiasts in India. All of these opportunities are highly lucrative and perhaps is the reason behind attracting so many people including you.
So what are stocks?
Well, stocks directly represent a particular share in the ownership of the company. Simply put, when someone buys or invests in a company’s stock, he/she becomes a partial owner of the company.
When you first set your foot in the financial world, it is easy to get overwhelmed and confused by the pool of information present on the internet.
Moreover, that friend of yours who invests in stocks is also not able to clearly explain to you how you can enter this lucrative world.
Worry not, this article will help you understand the various types of careers you can have in the financial world. Hopefully, it will help you understand how to make a better career choice in the financial world.
When put into simple words, stock traders are financial investors. There are mainly two types of traders: Individual and professional.
Individual traders trade for themselves and are also called retail traders. Professional traders are those who buy and sell (basically trade) stocks on behalf of a firm or a financial company.
The primary job of a trader is to buy shares when they are at a reasonable price and sell them when it is profitable. They do this either by working with a stockbroker or a brokerage firm.
Stock trading is more of a business opportunity than an employment opportunity. As a result, it doesn’t require you to have a certain degree or experience. However, you will require deep knowledge of the stock market as well as the passion for it to become successful.
A sub-broker can be called as the right-hand of a stockbroker. They are appointed by a stockbroker and act on behalf of them as an agent to assist investors in trading. However, they are not a member of the stock exchange.
They earn the commission between a real stockbroker and a trading member.
Sub-brokers are required to be registered with SEBI (Securities and Exchange Board of India) and the stockbroker is responsible for all acts of commission. They also need to clear 10+2 to be eligible for the job
If you wish to trade or invest in the stock market, then you will need to open a trading and Demat account. These accounts are offered by stockbrokers. Moreover, stockbrokers also have a good understanding of the market.
They advise the clients before making a trade or investment and in exchange for making a trade, stockbrokers get a commission. Additionally, trading cannot be executed directly by an investor or a trader.
It has to be done through stockbrokers as they are the members of the stock exchange.
You don’t need a specific educational background to become a stockbroker in India. There are many engineers that got fascinated by the financial world and switched their career to become a broker.
However, you do need to clear the NISM exam and get registered with SEBI. Additionally, you will need to get graduated in any stream and gain a minimum of 2 years of experience in a brokerage firm. You also need to be at least 21 years of age.
If you have watched the TV series Suits then you probably know the basics of this one. But if you haven’t, here it is
Investments bankers are financial professionals that help businesses and corporations raise money in the capital market. They do so by finding investors, issuing debt, or selling equities in the company.
Investment bankers need to have deep knowledge of the stock market to be able to estimate the value of a company.
You will need to have a bachelor’s degree in order to get an entry-level job as an analyst. There are many investment banks that allow you to climb to the position of an investment banker without an MBA but most don’t.
So we suggest gaining an MBA (Masters in Business Administration) if you wish to become an investment banker.
Accountants are those who handle all the paperwork with occasional financial advice. They prepare financial statements and reports as well as ensure that the taxes are filed properly.
Accountants play an important role in keeping the registers up-to-date in the ever-changing world of finance.
To become an accountant, firstly you will require a minimum of a bachelor’s degree in the commerce field. Without it, nobody will be willing to hire you. Secondly, in order to advance in your career, you will need to clear a series of exams and become a CPA (Certified Public Accountant)
Financial or Investment Advisor
As the name suggests, financial advisors are professionals in the stock market that advises investors to make the best possible investment.
Investment advisors work in consultancy firms and then move to open their own consultation house. If you wish to provide financial advice to many and make big bucks while doing so, becoming an investment advisor might be the right choice for you.
To become a registered investment advisor you either need educational qualifications set by SEBI in finance or commerce or you will need at least five years of work experience at a financial institution.
We suggest getting both work experience as well as a post-graduate degree in finance to become successful in this field.
Financial managers are responsible for maintaining the good financial health of the company. Their job includes looking after employees, taking care of financial documents such as budget reports, and giving suggestions regarding investments.
They need to stay up-to-trend with the market and need to know the current value of the company’s shares.
Becoming a financial manager has the same requirements as becoming a financial or investment advisor. Some companies even hire one person to perform the job roles of both a manager and an advisor.
Apart from the career choices mentioned above, there are many kinds of research analysts present in the stock market. Their primary job role is to analyze stocks and give investment advice based on research and analytical data.
Major employment opportunities arise in the following:
- Brokerage Firm
- Mutual Funds
- Financial Institution
- Investment Banking
- NSE/ BSE/ CDSL/ NSDL/ SEBI
Look for job opportunities in these and remember that its a very practical industry. If you get a part-time entry-level position while you are in college, take it and give your CV some weight by adding work experience.