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

Salaries

• Working in a Company – High level of variable pay.
• Independent Broker – Earns as an Entrepreneur

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Career in Investment Banking, Job Prospects, Personality Traits & Salaries

Bankers who deal with corporates relating to specialized & structured products such as Capital markets, Foreign Exchange Dealing, Mergers & Acquisitions & large sized offshore / domestically structured loans.

The Prospects

• Private Sector & Foreign Banks, Investment Banks
• Best Companies include – Citibank, HSBC, Standard Chartered Bank, JM Morgan Stanley, Merill Lynch, Credit Suisse First Boston (CSFB), Leighman Brothers

The Job

• Dealing with corporate clients special need based banking requirements
• Business Development and marketing to existing & new corporates
• Structuring new products and innovative ideas to innovatively meet clients requirements
• Staying extremely updated and aware of changes in the economic environment and government regulations
• Liasioning with government bodies and offshore points to provide innovative solutions

Personality Traits

• Excellent interpersonal skills
• Innovative
• Sound Financial Skills
• Leadership skills
• Ability to work under pressure
• Risk taker
• High level of integrity

Career Progression

• As a fresher, one can look at starting out as an Assistant Manager with subsequent promotions to a Manager, Assistant Vice President and the Head Investment Banking.

Salaries

• Very large variable pay option (performance based option) in the salary package.
• An Assistant Manager can hope to start approximately with Rs 6 - 10 lacs per annum after a PG degree.
• Middle management can expect to earn approximately between Rs 5 to 15 lacs per annum whereas an Assistant Vice President can expect to earn approximately between Rs 30 to 40 lacs per annum based on their experience and the organization in question.
• An Investment Banking Head commands approximately Rs 70 – 80 lacs per annum

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Career in Finance

Finance as a Career can be both highly lucrative and challenging. There is a wide spectrum of careers that can be followed:

1. Banking – Commercial & Investment
2. Corporate Finance
3. Auditing, Financial Analysis, Accountancy and Taxation
4. Stock Analyst / Broker

1. Banking

A. Commercial Banking

That banking which deals with individuals and corporates to meet their everyday banking requirements such as cash deposits / withdrawals, investment advisory, deposits, loans (housing, car etc.), credit cards, remittances (payments, Demand drafts etc.), lockers etc.

The Prospects:

• Private Sector & Foreign Banks,
• Best Companies include – HDFC Bank, ICICI Bank, Citibank, HSBC, Deutsche Bank, Standard Chartered Bank

The Job

• Retail / Consumer Banking
• Dealing with individual clients banking requirements
• Business Development and marketing for new clients
• Ensuring smooth delivery of all banking products to the client
• Staying updated and aware of changes in banks products & banking regulations
• Resolving customer issues and complaints
• Doing a credit risk analysis of clients if bank is giving loans.
• Corporate Banking
• Dealing with the banking requirements of corporate clients
• Analysing and continuously monitoring company’s performance (balance sheets, P&L etc)
• Business Development and marketing to existing & new corporates
• Structuring new products and ideas to innovatively meet clients requirements
• Ensuring smooth delivery of all banking products to the client
• Staying updated and aware of changes in banks products & banking regulations
• Resolving customer issues and complaints

Personality Traits

• Excellent interpersonal skills
• Leadership skills
• Team-Worker
• Ability to work under pressure
• Patient
• Risk taker
• High level of integrity

Career Progression

• As a fresher, one can look at starting out as an Assistant Manager with subsequent promotions to a Manager, Assistant Vice President and then Head Corporate / Retail Banking

Salaries

• The starting salary for an Assistant Manager is approximately Rs 2 Lacs per annum for a graduate and Rs 4-6 lacs per annum for a post graduate. Depending on their performance and experience, the organization in question and of course location, middle management can expect to earn between Rs 5 to 15 lacs per annum whereas an Assistant Vice President can expect to earn between Rs 20 to 30 lacs per annum. The Head of Corporate / Retail Banking commands a salary of about Rs 50 – 70 lacs per annum.

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Career in Management -MBA - Finance

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Finance as a Career can be both highly lucrative and challenging. There is a wide spectrum of careers that can be followed: -

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Banking – Commercial -

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Banking deals with individuals and corporates to meet their everyday banking requirements such as cash deposits / withdrawals, investment advisory, deposits, loans (housing, car etc.), credit cards, remittances (payments, Demand drafts etc.), lockers etc. The job includes roles such as Business Development, Customer Service, and Operations etc. It is highly customer interactive and requires the individual to have Excellent interpersonal skills, Leadership skills, Team-Worker, Ability to work under pressure, Risk taker and have a high level of integrity. Job prospects include Private Sector & Foreign Banks like HDFC Bank, ICICI Bank, Citibank, HSBC, Deutsche Bank, Standard Chartered Bank.

Click to view details on Banking Courses

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Investment Banking -

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Bankers who deal with corporates relating to specialized & structured products such as Capital markets, Foreign Exchange Dealing, Mergers & Acquisitions & large sized offshore / domestically structured loans. The job includes Business Development and marketing roles and structuring new products and innovative ideas, and liasioning with government bodies and offshore points to provide innovative solutions.

The individual must have excellent interpersonal and financial skills, be innovative, and have a high level of risk taking abilities. Of all Finance jobs Investment Banking is the most highly paid, as it is a high-risk high return job with a large level of variable pay. Best places to work would include - Private Sector & Foreign Banks, Investment Banks such as Citibank, HSBC, Standard Chartered Bank, JM Morgan Stanley, Merrill Lynch, Credit Suisse First Boston (CSFB), and Leighman Brothers.

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Corporate Finance-

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Corporate finance professionals look after the day-to-day financial requirements within any corporate / service industry. It is an essential department within any organization. The financial arm could have its own experts in taxation, accounting, stock markets and investments etc. The job includes meeting and accounting for all monetary requirements of different departments, raising finance for the company through suitable instruments such as Loans, Debentures, Commercial Paper, Stock Markets etc, ensuring all Statutory Requirement are timely met by the company e.g. taxation, RBI declarations etc and making all investment portfolio decisions for the company.The person should have sound Financial and leadership skills, be able to work under pressure and be a risk taker with a high level of integrity.

All Corporates like HLL, Infosys, Cipla, Nestle, Ranbaxy etc. would be places to work.

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Audit, Financial Accountancy & Analysis and Taxation-

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A Financial Analyst's role focuses primarily on financial analysis while the CA focuses on financial accounting, taxation and costing, the Auditor on is the policeman for the financial accountant and a Taxation Expert is the professional on all tax laws and procedures.

All the above jobs can be in-house in a corporate or can be in an Accountancy firm / Consultant. The best route to enter any of these professions would be through a Chartered Accountancy Program (for Audit this is the only route) else Certified Financial Analysis (CFA). The job includes analyzing financial information to evaluate financial performance and make projections for the future, monitor all costs, conduct Audits, provide consultancy services to organizations on issues such as cost control, taxation etc, and provide advice and consultancy services on issues that relate to conceptual and technical inputs in the areas of Indian Financial System & Accounting, International Financial Management.

The individual should have excellent Analytical & Reasoning powers, good judgment and financial skills, an objective outlook with team working skills.

All Corporates and Financial Consultancies such as Ernst & Young, AF Ferguson, PricewaterHouse Coopers etc. would be good places to work.

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Stock Analyst / Broking-

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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 organizations and jobs to choose from, professionals in this sector can hope for a good future. Various roles such as a Stock Trader – buys and sells shares on behalf of customers and self, Equity Analyst – analyses trends and companies thus making recommendations on future happenings, Stock Advisers – directly deal with the client and manages their money by liasioning between the broker and the client and advises the latter on correct course of action.

The person should have excellent Analytical & Reasoning powers with good judgment and financial skills. Have an objective outlook with a high level of General Awareness and the ability to make decisions quickly.

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