Tuesday, January 5, 2010

Stock Analyst and Broking - Career in Finance

Stock Analyst / Broking

Stock exchanges are like market places where stockbrokers buy and sell securities for individuals or institutions. Stock markets have gone through tremendous improvements to match the expectations of the growing industry. The introduction of norms for greater transparency in operations and the international trading and investment exposure, as well as support of professional analysis have brought about tremendous improvements in this sector.
As the opportunities are many with a wide choice of organisations and jobs to choose from, professionals in this sector can hope for a good future.

The Job

Stock Brokers
-Stock brokers independently may deal with the following:
  • Operations for private clients and institutional clients.
  • Some brokers act only as dealers (client investment managers) while others are principally advisors (equity sales advisors).
  • Some brokers provide services for portfolio management and constantly review investments in the light of trends and developments in the market.
  • Financial services brokers specialise in bond issues, handling institutional accounts or mutual funds.
-In large firms, stock brokers work in the following areas:
  • Deal with, and advise, smaller firms
  • Securities brokers work on behalf of firms with private clients to understand the investment plans and objectives of the client i.e expectation for returns and interest in risk taking. They are representatives of brokerage firms and execute orders to buy and sell securities. They are equipped with both knowledge and experience to give advice on the sale and purchase of scrips and management of financial investments.
  • Advise for investments.
  • Carry out market transactions.
Securities Analysts
Brokers may be required to advise on floatations of shares in conjunction with the merchant banks. They are expected to have knowledge of the market to be able to anticipate certain trends and make predictions.

Investment Analysts
The Investment Analysts provide accurate information to investors and fund managers. There are two major roles:
a. Institutional analyst - The process of analysis involves making predictions of the company's future based on its past and present financial status.
b. Stockbroking analyst - Investment analysts work with firms which provide advice on buying and selling of shares and also with those firms which have funds to be managed. Fund managers in merchant banks, insurance and pension funds are involved with huge investments made by millions of investors. The funds are eventually disbursed as insurance claims, pensions etc. They are specialised financial advisors who provide advise on the how and where of details concerning investment.
Investment analysts study the company's annual report, visit the organisation, interview senior executives to assess statistical information, profits and import and export figures for the industry as a whole. Institutional analysis involves studying the entire sector.

Personality Traits
  • Excellent Analytical & Reasoning powers
  • Good Judgement
  • Sound Financial Skills
  • Objective Outlook
  • High level of General Awareness
  • Quick decision making ability
  • High level of integrity
  • Salaries
  • Working in a Company – High level of variable pay.
  • Independent Broker – Earns as an Entrepreneur
  • Working in a Company – High level of variable pay.
  • Independent Broker – Earns as an Entrepreneur
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