If the life of billionaire investor Warren Buffett or popular stockbroker Jordan Belfort (whose life inspired the making of The Wolf of Wall Street, played by actor Leonardo DiCaprio) sounds exciting, a career in stock broking might be of interest to you.
Stockbrokers are the veritable links between individuals and the stock market. Stock markets allow individuals and investors to purchase shares of a particular company. Now, as the company witnesses financial growth, there is an appreciation in the price of the shares. Accordingly, one can sell the shares at a higher price, making good money. Stockbrokers play a vital role in facilitating the buying and selling of shares.
Their job roles include selling of broking services, helping a client open a trading account, executing trades on the stock exchange system and receiving or giving away funds and shares.
“One can become a stockbroker through multiple academic channels. One can get into a skill based programme after completing Class 12 and then apply for a job. One can also do a BBA with a special focus on financial markets or pursue an MBA in financial markets. Accordingly, students will get absorbed in the different functions in a stockbroker’s office,” says Ravi Varanasi, chief of business development, NSE. “If someone has pursued an MBA degree, he can become a financial analyst, dealer, risk manager and so on. Based on the aptitude and skills acquired, a student can get involved in operations, risk management, sales and settlement of funds and securities.” Even chartered accountants and those with a background in finance can become stockbrokers, Varanasi adds.
To be good at the job, one needs to be very conversant with the dynamics of the stock market.
Stockbrokers can work as financial managers, financial analysts, investment advisors and equity analysts.
Some institutes such as the National Stock Exchange, Bombay Stock Exchange, the Institute of Company Secretaries of India offer courses on stocksbroking and financial markets.
Entering the stock market
One must register with Securities and Exchange Board of India (SEBI) to become an authorised stockbroker
Rs. I take home
Rs. 10,000 onwards (depends on commission of sales)
I love my job because...
The idea of predicting future economic trends and convincing people to invest in stocks is exciting
Along with good knowledge of the stock market, good quantitative, communications and team playing skills with an ability to work under tremendous pressure, can help one excel as a stockbroker across companies