Stocks to Security

We have come a long way from just one stock exchange in Mumbai. Today there are stock exchanges in every metropolis, where business worth crores of rupees is transacted everyday.

STOCKS and shares are a method to raise funds from the public for use by the government or other private companies. These funds are used for the development and progress of the company, and in turn, they share the profits with the investors who have bought the shares of the company. With the entry of MNC's into the Indian market and liberalisation of economy, the stocks and share industry have taken off in a big way.

Stock exchange brokers deal in crores of rupees with computerised operations and qualified industry specialists to impart advise on buying and selling of stocks. The auto mated screen -based trading facilities and market operation transparency calls for professionals who can cope with the demands and expectations of the investors.

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 legislation of the capital markets.

Main areas of work

Activities in the stock market are wide and varied, since companies provide a blend of three functions - pre sales, sales and after sales. There are tremendous opportunities for economists, industry specialists, financial analysts, financial planners, capital market specialists and other such professionals.

The firms are organised into three departments:

* Sales and trading for the owners of securities

* Investment banking for the firms and governments that issue securities, and

* Capital markets that fall between the broker and the other two divisions.

The Stock Dealer keeps the interest of the client in mind to sell the shares at required rates. Researchers and Analysts reviewuate the stock markets to impart detailed and correct information on the industries and market.

The Share business is of two types: Primary market and Secondary market

Primary market: In primary market certain companies issue their shares directly to the public, collect applications and after sorting out the good issues, they put in their applications. The share brokers get their brokerage on the transactions made.

Secondary Market: The secondary market comprises of brokerage that a broker earns in the buying and selling of companies that are listed in the stock exchange. These people are in charge of the conformation and carrying out of transactions. Orders are taken and deliveries are made in the latter half of the day. The erratic fluctuation of rates in the share market makes the activity in a trade market a dynamic process. It is necessary for a broker to have adequate knowledge about the economic and political factors as they affect the share market.

Security brokers represent brokerage firms that handle orders to buy and sell securities. They handle the overall financial situation and counsel on what stocks to buy and sell.

Job profile

Registered representatives or account executives - These are salespersons who work for a firm that is a member of one or more major stock exchanges. Securities analysts - The largest single group of employees in the investment advisory category, their job underlies the advice given by brokerage and counselling firms. Candidates in this area have opportunities to work with banks, insurance companies, pension funds, mutual funds, foundations, investment advisers and brokerage firms, and other large financial institutions.

Mutual fund salespeople - Professionals in this field sell a professionally managed product. Neither the selling organisations intervene in the investment policies of the fund. Security sales representatives - They handle multiple job profiles that include opening accounts for new customers and obtaining all the information required to permit the customer to buy and sell securities through the brokerage firm. They execute buy and sell orders for customers by relaying the information on a company's prospects from their research departments and are called upon to advise a customer on the knowledge of `buy' and 'sell'. It is essential that they be well informed about the current economic conditions.

Entry and Eligibility

A bachelor's degree in Commerce suffices at the entry level. With the appropriate professional qualifications, candidates can either opt to join a stock broking firm or stock exchange, or start a one's own financial agency. For research in the field it is imperative to have a sound knowledge of finance, be informed about the financial health of every industry and updated on the share market situation.

Equity research is a specialised finance field that requires an MBA in Finance or a Chartered Accountancy qualification.

There are several institutions that impart training courses in Stocks and Securities. Pune University offers a Diploma in Capital Market Studies that is conducted in collaboration with the Mumbai Stock Exchange. The Mumbai Stock Exchange Training Institute and Bombay Stock Exchange, Mumbai, run certificate courses periodically throughout the year.

Job prospects in this field are on the rise thanks to the increase of business in stock exchanges. A wide range of careers are available with investment banks and 20 percent of traditional banks, that now own full-service brokerage firms.

PRATIBHA GADHALAY

pratibha.hyd@careercommunity.co.in

Career Clues

* A feel for the market swings, knowledge about stocks and shares, and a logical and analytical ability are pre requisites.

* Candidates opting for this profession need to be tactful when dealing with clients, possess keen business expertise, and the ability to visualise in practical terms the implications of present day economic policies and actions.

* This profession involves tremendous work pressure as the commodity being traded concerns large volumes of money.

* This is a profession with a higher risk profile than others because professional growth depends on the share market, over which one has little control.