Stock Market is a fast growing Section of Brokers

Operational behind the scenes of this magical stock market is a fast growing section of brokers and sales traders, which tracks the progress of the many stocks and assists its client base by executing buy/sell decisions at the blink of an eye.

The vital business style followed in the share market broking business might be divided into three segments: research, sales, and trading. While these functions exist in all broking houses, those catering to retail clients or high net worth individuals may combine the function of sales and trading. Although research involves studying a number of companies and their business plans, analysing their financial data and publishing an information report through private channels, the job of the sales person involves filtering the data provided through research and disseminating simplified information to its client base.

The third task spells the diversity between a broker and a sales trader/institutional broker. In its essence a stock broker is an intermediary between the stock exchange and those who want to invest in the market. Even as a retail broker deals with a huge number of orders in a day, a sales trader or an institutional broker deals with smaller number of orders each worth millions of dollars. However, no institutional sponsor can directly place 10 million dollars in a specific script at one time; this would expand the value of the share and lose your client money, that’s where a sales trader steps in. Sales traders are likely to buy stocks with minimal impact on the market.

Academically, an individual holding a CFA, Chartered Accountant or an MBA (finance) would be an ideal candidate for job in sales trading. However, even those holding a BCom could consider a career in the stock broking business. Even as a strong academic history would be the entry to a job in a top broking house, a person may have to start off with a back office job and then work his/her way to the front office where the trading function is actually carried out. Still, those in the business indicate that well-rounded individuals who are aware of the global economic and political environment and possess strong quantitative skills have a much better shot at securing a job in the front office. Another unusual way to strengthen your résumé would be to pursue a course at the recently inaugurated Centre for Capital Market Studies by the BSE and NMIMS institute. The BSE and the broker village are attempting to educate those entering the markets systematically and professionally. The course offered by BSE is just a step in that guidance. With the broking franchisee’s growing the reach of the marketplace, the need to improve upon the knowledge of those entering the field has been identified and it is advisable to aspirants to consider these career courses.