The financial market is the marketplace where financial deals are done by the sellers and buyers like selling and buying of the stocks, bonds, currencies, bills of exchange, commodities etcetera. This may be an electronic system like NASDAQ or physical places like NYSE, BSE, and LSE.
Role and Importance of Financial Market?
The financial market plays a significant role in the financial sector as with the help of these markets buyers and sellers can meet over the same platform, they don’t have to find each other. With the help of these marketplaces, they can easily do their trading. The other main function of the financial market is that it can set prices for global trades and for other financial trades.
Types of Financial Market?
There are different types of financial markets present, each market plays a different role and deals in the different financial sector. Some of the important fields of the financial market are classified below.
- Capital Market: The capital market is the part of the financial sector in which the long-term debts (over 1 year) are provided and taken. In this institution, the funds are gathered from the one party and make available to the needy party. The capital market is further classified into two types:
- Primary Market: The primary market is also called the new issue market in which the securities like shares and bonds are traded for the first time.
- Secondary Market: The secondary market is also known for the aftermarket. In this marketplace, buyers purchase the previously issued securities like bonds and stocks.
- Money Market: In the money market, the liquidity is controlled by this sector with the lending and borrowing of the money for a short time period generally less than 1 year.
- Foreign Exchange Market: This marketing sector assists the foreign exchanges. In this marketplace, the trade of all currencies is done; the buying and selling of foreign currencies are done under this sector. Around $5 trillion amount is traded per day.
- Commodity Market: In this marketplace, the trading of primary products takes place and manages by this sector. There are two types of commodities one is the soft commodity in which wheat, oil, fruit, sugar, coffee etc. comes and another one is the hard commodity in which the products like gold and oil lies.
- Derivatives Market: The derivative market is the institution where trading of derivatives takes place between two or more parties, it is based upon the valuable things like stocks or bonds.
- Insurance Market: The insurance market transfers the risk from one party to another who is willing to take the risk.
Career Options in the Financial Market
The financial market is one of the most popular fields of work and is a good option for the youngsters to do work in this field and achieve success. A career in the financial market requires a variety of skills like communication, creativity and analytical skills are must in this field. This industry offers a variety of positions for the newcomers to start their career in this field like
- Job Opportunity in the Corporate Finance: In this job, you will work for the firm or company and deals with the financial matters of the company and help them to find the money for the company to run and for growing the business of the firm. As a financial officer, your job is to create value for the company. There are three main entry-level designations in the corporate finance i.e.
- Accountant: An accountant in this field takes care of the records and manages the assets of the company. The requirement for this post is that the candidate must be a bachelor’s degree holder and the other requirement is that he/she should have a CPA (Certified Public Accountant) certification. Some employers prefer the candidates with MBA in accounting. The median annual salary of the accountant is around Rs.2,50,000.
- Budget Analyst: The budget analyst’s role is to distribute the financial assets of the corporations and make the budget of the corporation and analyze it for helping them to save money as well as to increase the profit. The requirements for the same post are the candidate must have the bachelor’s degree and also possess the course in statistics. The starting annual salary of an analyst is around Rs.3,50,000.
- Financial Analyst: The main role of the financial analyst is to guide the corporations in their investing decisions. Specialized financial analysts are also called the risk analysts as they help the corporations in avoiding the future losses. The basic requirement for this post is that person should be a graduate and passed the level 1 of the CFA (Chartered Financial Analyst) exam. The average pay for the same post is Rs.3,60,000per annum.
- Job Opportunities in the Commercial Bank: The main goal of the commercial bank is to help people to achieve their financial goals. In this profession, you have to assist the customers with the bank services like loans, foreign exchange etc. There are also the varieties of positions in this stream like:
- Credit Analyst: It is an entry-level designation of this field. The main purpose of a credit analyst is to evaluate the customer’s loan application which is made to the bank. Moreover, meeting with the financial people and lenders is also the part of the job. The candidate with the bachelor’s degree and having the skills in the risk management is suitable for the job. Also, the annual salary of a credit analyst is around Rs.5,00,000.
- Loan officer: It is the most desirable designation in the commercial banking. The role of the loan officer is to make the loans to the companies and consumers. Good selling skills must be there for being a loan officer. For becoming a loan officer, bachelor’s degree in the finance, economics or in other field related course will be required. Besides this, the annual salary package of the loan officer is approximately Rs.5,50,000 INR.
- Mortgage Banker: In this work, you have to make mortgage loans to the individuals and businesses. Applicants like homebuyer approach you regarding the loans in that case high contacts with the real estate professionals also involve. The candidate with the bachelor’s degree is eligible for this post. Also, the salary is handsome.
- Trust Officer: As a trust officer, you have to provide the trust services to the customers and also the financial products. Moreover, also have to advise the customers regarding their relevant problems. Interact with the people to facilitate the cash flow.
- Job Opportunities in the Investment Bank: The investment banks provide many services to the corporate, companies and governmental bodies related to the capital. The main purpose of the investment banker is to act as a middleman between the corporate and the investors when the company decides to issue new stocks to the public for public funding. It is a good option to pursue your career in the investment bank. Typical designations in an investment bank are:
- Investment Banking Analyst: This is the lowest rank designation in the investment bank. The main job of an analyst is to follow up the orders of associates and higher authorities like VP. The tenure of an analyst is generally between 2 to 3 years after that you will get promoted. The candidate should have a bachelor’s degree in any stream; also computer knowledge is a must. The annual salary of an analyst is around Rs.3,60,000.
- Investment Banking Associates: The associate is one level up from the analyst. The job of the associate is to look over the analyst’s work and fulfill the demands of the VP. After completing the tenure of an analyst you are promoted to the associate or you can get direct entry to the associate level if you possess the MBA. Generally, the tenure of the associate is of three years after that you will be promoted as a VP. The annual package of an associate is around Rs.9,00,000.
- Job Opportunities in the Insurance: The insurance company’s main role is to give insurance to the individuals regarding their potential loss. It is also a good sector for adopting as the field of work. There are various positions in the insurance company in which you can pursue your career.
- Actuary: An actuary helps the insurance company with the statistical figures about the events that will occur and presents the amount which is charged for the coverage. The statistical and mathematical skills are needed for this profession. So the candidates having the bachelor’s degree in mathematics or in the related stream can go for this profession.
- Claim Adjuster: The adjusters are the insurance examiners or investigators; they help the insurance company by giving the proper figure of the loss and tell the company about how much they should pay for the loss or damage. They have to meet with the clients and inspect the property for which the claims are being made. The candidates with the degree of finance, business or related to the field can choose this career.
- Claims Clerk: The role of the claims clerk is to deal with the paperwork related to the insurance policies. They have various jobs like the process the new policies or modify the existing policies. The applicant should have a bachelor’s degree for this designation.
- Sales Agent: The sales agent usually interacts with the clients and introduces the insurance policies to them and helps them in choosing the appropriate insurance policy for them. The great selling skill is required for this profession. The candidate having the high school diploma can opt this field, some employers demand the degree holders.
- Underwriter: An underwriter seeks the conditions of the case and decides whether the customer meets the criteria of the coverage. The job of the underwriter is to find out that coverage should be provided or not.
The financial market will be the turning point for the new generation who are seeking jobs in this field. With the required qualification, you can join your desired field of work and will achieve success in the career.
