Can you make a career in STOCK MARKET?

Stock markets – The most rewarding career

Today, a lot of prospective students interested in making a career in stock markets are quite uncertain about its future prospects. As the trend,” Go with the flow” is popular from the yesteryears which means that students opt for Engineering or Medical after they complete their high school because their parents think that only these two careers would earn them respect in the society. Other than these two options, only a few dare to take a different stream. The creativity we had earlier as a child fades as soon as we enter college. Our only aim then is to get a job in a decent company so that we(and our parents) are both satisfied.

I strongly feel that this trend should change. There are a lot of rewarding careers waiting for you. Similarly, making a career in stock markets seems fascinating however due to lack of financial education in India, many of them don’t have the idea of how to go about it.

Let us discuss it today.

Stock market is not for the weak heated. Only if one is mentally as well as physically fit, one should enter this field.

One major stock market boom led by the big bull Harshad Mehta triggered a wave in the 90s that stock market was the most rewarding career. The newspapers were full of news on the then big bull. The articles speculated endlessly on the way he had made big money and how stock market had tremendous opportunities for everyone who wanted to enter this field. Slowly, as the scam was exposed, this trend eventually faded as a lot of fellow investors lost huge sums of money at that time.

The next generation(i.e. my generation) grew up knowing nothing about stock markets as people were afraid to enter it. Most of the people I met were victims of the market who had invested some amount earlier and paid for it. So they were keeping themselves away from the markets.

We are all shaped from the good and bad experiences in our life. My experience told me that when people start out in stock markets, initially everything seems to go well. Thereafter, as they get deeper into the markets, and make some losses, they often get into endless research mode, seeking some golden key to open money pot called the stock market. Once they get into this mode, they go off-track, losing their focus and along with it the initial profit they had made plus their original capital. Eventually, they end up cursing stock markets and quit the markets forever. They also give a bad name to the stock markets scaring away other people they know who are interested in it. Imagine you are driving a car and met with an accident. Whom would you blame? The driver or the car? – Definitely the driver right!

Similarly, stock market is a car. A car can never make a mistake. Its always the driver who needs to be blamed for the accident. This is the first rule for opting it as a career. This thought needs to be inculcated into your mind that the market can never make a mistake. The investor/trader is the one who is mistaken.

Securities and Exchange Board of India(SEBI) started National Institute of Securities Market(NISM) in the year 2006. The institute carries out a wide range of capacity building activities at various levels aimed at enhancing the quality standards of and increase the participation in the securities markets. The institute’s six schools of excellence and the National Center for Financial Education works in synergy towards professionalized securities markets. The purpose of NISM is to lead, catalyze and deliver educational initiatives to enhance the quality of Securities Markets. It has long term programs and short term programs. One can even pursue a post – graduate degree from NISM or BSE Institute Ltd. It requires a minimum of undergraduate degree from any of the streams:- Engineering, Commerce, Arts etc. It comprises of :-

·         Academic Programs

·         Certification Programs

·         Regulatory Studies

·         Financial Literacy and Inclusion

·         Corporate Governance

·         Research

Indian Securities Market has become quite big and the size of Indian Securities market is 115,00,000 Crores which is also known as the Market Capitalization. This is the collective value of all the companies listed on BSE and NSE.

There are 3 types of people in Securities market:-

1.       Investors – People who have money.

2.        Issuers – People who require money.

3.       Intermediaries – People who are in between these Issuers and Investors.

All the below mentioned are the intermediaries in the market:-

·         Stock brokers

·         Sub brokers

·         Custodian

·         Registrars and share transfer agents

·         Merchant bankers

·         Asset management companies

·         Portfolio managers

·         Underwriters

·         Depository Participants

·         Trading and Clearing members

Now the most awaited question :- Who are the employers? Who are going to provide you jobs once you do these courses?

All these are the employers who would provide you a job:-

·         Mutual Fund Distributors

·         Asset Management Companies

·         Banks

·         Brokerage Firms

·         Foreign Exchange consultants

·         Stock Exchanges

·         Investment Advisory firms

·         Depository Participants

·         Other SEBI registered market intermediaries

NISM exams are highly credible in the markets and are accepted all over the country.

One can start his own advisory firm, teaching Institute, investments or work for all the above mentioned employers. That is why stock market is the most rewarding career.

BY ABHIRAM DAPKE