What Kind of Jobs Involve the Stock Market?
If you have an interest in the stock market, there are many different careers paths you can take to be involved. From becoming a stock broker and helping clients with their investment portfolios to trading stocks to reporting on the markets, there are careers involving the stock market that suit people with many different backgrounds and interests. When looking at careers related to the stock market, be aware of educational requirements and licenses needed to perform the job.
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Stock Broker and Financial Advisor
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Stock brokers and financial advisers offer financial advice to their clients. They help clients determine the best investments to meet objectives and life goals. Brokers and advisers also execute the trades on behalf of their clients and keep an eye on the investments to ensure they remain suitable for their clients.
Many financial firms have training programs for new college graduates and those looking to change their career path and become a broker or adviser. Once you decide to become a broker or adviser, you must pass several exams, including the Series 7 and 66 exams as well as state exams in many jurisdictions.
Trader
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Stock traders either trade on behalf of a financial institution or they trade for themselves. If you work for a financial institution, you make trades with the institution's money. All profits belong to the institution. You will receive a base salary plus bonuses based on your trading performance. If you trade for yourself, you trade with your own money and all profits are yours to keep. Trading for yourself involves substantial risk of loss; independent traders do not have the financial safety net of a base salary or benefits such as company paid health insurance.
Traders who work for financial institutions will need to pass several securities exams, including the Series 7 and Series 66. Independent traders do not need to be licensed; therefore, they are not required to take these exams. -
Stock Analyst
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Stock analysts typically work for financial institutions. They analyze publicly traded companies' financial statements, the competitive landscape and the overall economy and make buy, hold and sell recommendations to the institution's clients. Stock analysts usually have a background in finance or they have in-depth experience in a particular industry they can use as insight in their stock analysis.
Stock analysts need to pass the Series 7 exam. Most financial firms have in-depth training programs that new analysts must complete. Once doing so, a new analyst will most likely work as a junior analyst for several years. Junior analysts perform much of the financial modeling and data collection the senior analysts use for their recommendations.
Investment Banker
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Investment bankers provide advice and services to publicly traded and private companies. They help companies issue stock to the public as well as find financing for acquisitions or expansions. Investment bankers also evaluate the value of companies to determine the correct price that should be used during a takeover or merger. Finally, they help companies find potential buyers and negotiate deals.
Investment bankers usually have an MBA, or a master's degree in business administration. Landing a job at an investment bank can be difficult, but if successful a career in investment banking can be financially rewarding.
Financial Reporter
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Financial reports cover all aspects of the stock market. They report on the day-to-day events of the market as well as the earnings and profits of publicly traded companies. Financial reports also interview the executives of companies and the major traders in the stock market.
Financial reporters typically have a background in journalism. Others in the field have in-depth experience in the stock market, such as former traders; they use this experience as a basis for their reporting.
Tip
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If you are new to the stock market and do not have any experience, an ideal way to gain experience is to work as an intern. As an intern, you will gain the necessary experience in the industry and make professional contacts. You will also determine if a job relating to the stock market is appropriate for you.
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