Career in Stockbroking

Overview
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. Indian stock exchanges, today, are dealing with big numbers and big buyers. The capital markets are undergoing transformation. Today's progressive brokers deal in billions rather than in millions. Brokers now have all their operations computerized and employ qualified industry specialists to advise on buying and selling of stocks.

The Securities and Exchange Board of India (SEBI) has been empowered by an Act of Parliament to protect the rights of investors and ensure the promotion and regulation of the capital markets. It is the regulatory body in charge of the country's capital markets.


Personality Traits


Brokers or stock market professionals are now either playing host to foreign investment bankers, who are looking for opportunities on the Indian stock market, or visiting fund managers abroad seeking investment here.

Stock market houses are redefining themselves and the business of stock broking is highly visible today. Communication links between the dealing room and the trading ring are being improved.

The National Stock Exchange or NSE (inaugurated on 23 July 1994) provides nationwide facilities with access to investors all over the country. The automated, screen-based trading system using state-of-the-art technology makes market operations transparent. Stock broking business requires the services of specialists (in varied fields) - economists, accountants, finance managers, financial analysts, capital market specialists, and investments and financial planners.


Courses/Training


1. Postgraduate courses in economics and commerce are available in most universities in the country.
2. Finance managers may be MBAs with specialization in finance from the reputed institutes of management or from the departments of business administration of the major universities.
3. The Institute of Chartered Accountants of India (ICAI), New Delhi, conducts the chartered accountancy course for the plus two level through the foundation course and directly for graduates.



Placements And Prospects


Placements in Stockbroking:

1. Stock market transactions are carried out on computerised systems and deals are recorded for inspection at any time.
2. Stock brokers independently may deal with the following:
3. Operations for private clients and institutional clients.
4. Some brokers act only as dealers (client investment managers) while others are principally advisors (equity sales advisors).
5. Some brokers provide services for portfolio management and constantly review investments in the light of trends and developments in the market.
6. Financial services brokers specialise in bond issues, handling institutional accounts or mutual funds.
7. In large firms, stock brokers work in the following areas:
8. Deal with, and advise, smaller firms
9. 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.
10. Advise for investments.
11. Carry out market transactions.
12. The financial services in firms concerns pre-sales, sales and after sales services. These firms have departments to manage the sales and trading for the owners of securities, investment banking for firms and the government for the issue of securities, and capital markets which form an essential arm for trading activities.
13. As 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.
14. As Investment analysts – The Investment Analysts provide accurate information to investors and fund managers. There are two major roles:

Prospects:

Prospects for the stock broking business are bright and for those who are qualified to handle this business and have the necessary personality traits to cope with it, the openings are many. Foreign firms are waiting in the wings to secure government clearance for participating in the stock exchanges. Indian brokers will, therefore, have to come to terms with real competition and ensure international standards of services to the investor.