The process of buying and selling of stocks or other securities is known as Stockbroking. Stockbroking professionals are known as Stockbrokers. They buy and sell shares and other securities through market makers or Agency Only Firms on behalf of investors. All the Stock activities take place in Stock exchanges. These are like market places where all the transactions take place. Liberalization and globalization of economy has fuelled stock exchanges which have become busy places with transactions worth millions and even billions taking place everyday. Over the years, Stock markets have gone through tremendous improvements to match the expectations of the growing industry. There has been a tremendous improvements in this sector owing to the introduction of norms for greater transparency in operations and the international trading and investment exposure as well as support of professional analysis.
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. The rights of investors and the promotion and regulation of the capital markets is managed by a regulatory body which is known as SEBI - Securities and Exchange Board of India. It is in charge of the country's capital markets and has been empowered by an Act of Parliament for its powers and duties.
Some of its specialized fields are -
- Execution-Only - The broker will only carry out the client's instructions to buy or sell.
- Advisory Dealing - The broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.
- Discretionary Dealing - The stockbroker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf.
Content
The study of this field includes all or few of these –
- Introduction to Financial System, Markets and components
- Securitization, Factoring and Credit/Debt Rating
- Equity Research, Fundamental analysis, Technical analysis
- Mutual Funds - Management and Regulation
Objectives
- To impart and utilise efficient risk management techniques and to advance strategic goals
- To inculcate self-motivation with problem solving skills
- To develop strong selling skills and become good negotiators
- To work for the benefit of the investor, the firms and economy of the country which will finally result in Individuals personal development as well.
Basic Requirement
The minimum qualification required to be a stock broker is a graduation with at least 2 years of experience in a stock broking firm. A sub-broker, the previous stage of being a broker needs to have passed the XIIth standard to be eligible for this job.
- Postgraduate courses in economics and commerce are available in most universities in the country.
- 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.
- 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.
Job Perspectives
Professionals in this sector can hope for a good future as the opportunities are abundant with wide choice of organisations and jobs to choose from, Indian stock exchanges deals with big numbers and big buyers. The capital markets are undergoing transformation. An intelligent broker can 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. Economic growth and liberalisation taking place in the country has opened number of opportunities in various financial organisations. Stock Broking also provides ample opportunities in foreign countries. Though the job profile remains the same, which is of a broker, dealer or analyst, the remunerations are higher. Becoming a Stock Broker in NASDAQ means far greater monetary gains.
Some Job Types
- Economists
- Accountants
- Finance Managers
- Financial Analysts
- Financial Planners
- Financial Adviser
- Capital Market Specialists
- Investment Advisor
- Investments Planners
- Equity Analysts
- Independent Agent
Some Employment Areas
- Business Houses
- Stock Broking Firms
- Investment Banks
- Mutual Funds
- Investment Consultancy
- Insurance Companies
- Merchant Banks
- Pension Funds
