Table Of Contents
List of Top 5 Careers in Capital Market
Below are some of the top job roles you can opt for in a Capital Market career.
Table of contents
Overview of Capital Market Career
The capital market is where the companies raise funds from the common public via IPO & private placement. It is a link between the investors and the company since the company requires funds for its growth & expansion, and investors want to park their money in potential companies to earn future profits.
The Capital Market is divided into Primary & Secondary Markets.
- Primary Market: It refers to the fresh issue of securities to the public for the first time in the company's history. Companies who want to raise funds from the primary market can raise via IPO, offer through prospectus, rights issue & private placements.
- Secondary Market: Once the funds are raised from the primary market, the stock gets listed on the trading platform for normal trading in terms of buyers and sellers in the secondary market.
Stock Markets and Bond Markets
are the two major sources of capital markets. For example, NYSE in the United States is the world’s largest stock market. Capital Markets function in the US is regulated by the SEC, an agency that ensures smooth working of the stock markets as per the policies laid down from time to time.
In earlier times, capital markets jobs used to operate without computers, but in today’s scenario, they are operated by computer-based electronic trading platforms.
Many traders use Saxo Bank International to research and invest in stocks across different markets. Its features like SAXO Stocks offer access to a wide range of global equities for investors.
Career #1 - Merchant Banker
Merchant Banker provides Capital Market Services to companies that want to go public.
| Merchant Banker - Job Description |
|---|
| Responsibilities | Responsible for listing the company on the stock exchanges to raise capital. |
| Designation | Merchant Banker |
| Actual Role | Closely work with the capital markets and regulators to complete the listing process for a company via IPO or Private Placement. |
| Job Statistics | The Bureau of Labor Studies has captured no data. However, being a unique profile, merchant bankers normally work on a commission basis which varies from 1% to 3% of the Issue Size. |
| Top Companies | JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, and N M Rothschild & Sons are some of the top companies to work in the capital markets division. |
| Salary | They work on a commission basis on a deal-to-deal basis. The commission rate can be as high as 2-3% of the total deal size. |
| Demand & Supply | Very high demanded profile in the market since, as per the regulations, only merchant bankers are allowed to execute an IPO. |
| Education Requirement | CFA/CPA / MBA from Tier -1 Universities with at least 15-20 Yrs of Exp. |
| Recommended Courses | CPA/ MBA / CFA |
| Positives | Client-facing role as the banker works directly with the company's top management, and one transaction can generate a huge amount of revenue for the company. |
| Negatives | Extensive knowledge is required for the subject as there are multiple companies worldwide in different sectors. |
Career #2 - Business Development Manager
Business Development Manager is responsible for bringing business to the bank by selling various Capital Market Products like IPO, private equity, and debt.
| Business Development Manager - Job Description |
|---|
| Responsibilities | Responsible for executing capital market transactions for the investment bank. |
| Designation | Elite Relationship Manager |
| Actual Role | Understand the client’s requirement to advise the client about the entire capital market fundraising process. |
| Top Companies | JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, and N M Rothschild & Sons are some of the top companies to work in the capital markets division. |
| Salary | A business development manager's median annual salary can be between $1,00,000 to $3,00,000 since it is a professional role. |
| Demand & Supply | There will always be a good demand for this role: a highly professional approach to handling the company's top management. |
| Education Requirement | CFA/CPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp. |
| Recommended Courses | CFA/CPA/ MBA/CFP |
| Positives | Extensive networking opportunity. |
| Negatives | Difficult to break into the top management and get the deal in the company’s favor. |
Career #3 - Senior Manager - Capital Markets (Stock Exchange)
Senior Manager manages the entire IPO process from the stock exchanges.
| Senior Manager - Job Description |
|---|
| Responsibilities | Responsible for efficiently running the IPO market and being a crucial part of the fundraising process. |
| Designation | IPO Operations – Senior Manager |
| Actual Role | Manually list the stock on the platform for bidding in the stock market. |
| Top Companies | JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, and N M Rothschild & Sons are some of the top companies to work in the capital markets division. |
| Salary | The median annual salary for a general manager can be anywhere between $ 75,000 – $1,50,000 |
| Demand & Supply | It is an operative profile in the stock market and is in huge demand since the candidate understands the full market operations. |
| Education Requirement | CPA/MBA/CFA |
| Recommended Courses | CPA/MBA/CFA |
| Positives | Opportunity to work with the stock exchanges and in the main trading room. |
| Negatives | Operative profile. Machine-oriented. Lesser application of mind. |
Career #4 - Fund Manager
Fund Manager leads the Capital Market Division in AMC and manages the fund in the company on behalf of the investors.
| Fund Manager - Job Description |
|---|
| Responsibilities | Responsible for buying/selling the stocks in the portfolio as per his understanding of coordination with the dealer. |
| Designation | Fund Manager |
| Actual Role | Manage the fund's portfolio through buying and selling securities in the equity/debt markets. |
| Top Companies | JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, and N M Rothschild & Sons are some of the top companies to work in the capital markets division. |
| Salary | A general fund manager's median annual salary can be between $ 2,00,000 – $5,00,000, excluding bonuses. |
| Demand & Supply | A high demand profile in the market and highly paid since these are specialized services that require extensive expertise in the field and good relations in the capital market profession. |
| Education Requirement | CFA/MBA/IIM/CPA |
| Recommended Courses | CFA/MBA/IIM/CPA |
| Positives | Daily updates on the capital market transactions happening in the industry. |
| Negatives | High risk since public money has been invested. |
Career #5 - Stock Broker
A stock broker is a mediator between the markets and the investors. They charge a fee for the investors to place their buy/sell orders.
| Stock Broker - Job Description |
|---|
| Responsibilities | To advise on the stocks that will outperform and those that will underperform to their investors. |
| Designation | Stock Broker |
| Actual Role | Is an intermediary whose role is to act as a broker to give the investors access to the capital markets. |
| Top Companies | JP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, and N M Rothschild & Sons are some of the top companies to work in the capital markets division. |
| Salary | Brokers work on a commission basis on a trade-to-trade basis. The commission structure may differ from one broker to another. |
| Demand & Supply | Highly demanded profile since investors cannot directly access the capital markets. They have to go through a broker to trade in securities. |
| Education Requirement | CFP/CPA / MBA from Tier -1 Universities with at least 8-10 Yrs of Exp. |
| Recommended Courses | CPA/MBA/CFA |
| Positives | A licensed broker from the stock exchanges to deal in a broking business. |
| Negatives | High-pressure job since the business is dependent on the investors who will trade. |
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