Careers in Capital Market

List of Top 5 Careers in Capital Market

Below are some of the top job roles you can opt for in Capital Market career.

  1. Merchant Banker
  2. Business Development Manager
  3. Senior Manager
  4. Fund Manager
  5. Stock Broker
Careers in Capital Market

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Overview of Capital Market Career

The capital marketCapital MarketA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more is a market 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 for the sake of earning profits in the future.

Capital Market is divided into Primary & Secondary Markets.

Stock MarketsStock MarketsStock Market works on the basic principle of matching supply and demand through an auction process where investors are willing to pay a certain amount for an asset, and they are willing to sell off something they have at a specific price.read more 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.

Career #1 – Merchant Banker

Who is a Merchant Banker?

Merchant Banker provides Capital Market Services to the companies that want to go public.

Merchant Banker – Job Description
ResponsibilitiesResponsible for listing the company on the stock exchanges for the purpose of raising capital.
DesignationMerchant Banker
Actual RoleClosely work with the capital markets and regulators to complete the listing process for a company via IPO or Private Placement.
Job StatisticsNo data has been captured by the Bureau of Labor Studies. However being a special profile, merchant bankers normally work on a commission basis which varies from 1% to 3% of the Issue Size.
Top CompaniesJP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, N M Rothschild & Sons are some of the top companies to work in the capital markets division.
SalaryThey work on a commission basis on a deal-to-deal basis. The commission rate can be as high as 2-3% of the entire deal size.
Demand & SupplyVery high demanded profile in the market since as per the regulations, only merchant bankers are allowed to execute an IPO.
Education RequirementCFA/CPA / MBA from Tier -1 Universities with at least 15-20 Yrs of Exp
Recommended CoursesCPA/ MBA / CFA
PositivesClient facing role as the banker works directly with the top management of the company and one transaction can generate a huge amount of revenue for the company.
NegativesExtensive knowledge is required for the subject as there are multiple companies in the world in different sectors.

Career #2 – Business Development Manager

Who is a 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
ResponsibilitiesResponsible for executing capital market transactions for the investment bank.
DesignationElite Relationship Manager
Actual RoleUnderstand the client’s requirement to advise the client with regards to the entire capital market fundraise process.
Top CompaniesJP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, N M Rothschild & Sons are some of the top companies to work in the capital markets division.
SalaryThe median annual salary for a business development manager can be anywhere between $1,00,000 to $3,00,000 since it is a professional role.
Demand & SupplyThere will always be a good demand for this role is a highly professional approach In handling the top management of the company.
Education RequirementCFA/CPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp
Recommended CoursesCFA/CPA/ MBA/CFP
PositivesExtensive networking opportunity.
NegativesDifficult 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 – Job Description
ResponsibilitiesResponsible for running the IPO market with efficiency and be a crucial part of the fundraising process.
DesignationIPO Operations – Senior Manager
Actual RoleManually list the stock on the platform for bidding to happen in the stock market.
Top CompaniesJP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, N M Rothschild & Sons are some of the top companies to work in the capital markets division.
SalaryThe median annual salary for a general manager can be anywhere between $ 75,000 – $1,50,000
Demand & SupplyIs an operative profile in the stock market and is in huge demand since the candidate understands the full market operations.
Education RequirementCPA/MBA/CFA
Recommended CoursesCPA/MBA/CFA
PositivesOpportunity to work with the stock exchanges and in the main trading room.
NegativesOperative profile. machine-oriented. lesser application of mind.

Career #4 – Fund Manager

Fund Manager – Job Description
ResponsibilitiesResponsible for buying/selling the stocks in the portfolio as per his understanding of coordination with the dealer.
DesignationFund Manager
Actual RoleManage the portfolio of the fund through buying and selling securities in the equity/debt markets.
Top CompaniesJP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, N M Rothschild & Sons are some of the top companies to work in the capital markets division.
SalaryThe median annual salary for a general fund manager can be anywhere between $ 2,00,000 – $5,00,000 excluding bonuses.
Demand & SupplyA 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 RequirementCFA/MBA/IIM/CPA
Recommended CoursesCFA/MBA/IIM/CPA
PositivesDaily updates on the capital market transactions happening in the industry.
NegativesHigh risk since public money is been invested.

Career #5 – Stock Broker

Who is the Stock Broker?

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
ResponsibilitiesTo advise on the stocks that will outperform and the stocks that will underperform to their investors.
DesignationStock Broker
Actual RoleIs an intermediary and its role is to act as brokers in order to give access to the investors to access the capital markets?
Top CompaniesJP Morgan, Morgan Stanley, Goldman Sachs, Bank of America, Black Stone Group, N M Rothschild & Sons are some of the top companies to work in the capital markets division.
SalaryBrokers work on a commission basis on a trade-to-trade basis. The commission structure may differ from one broker to another.
Demand & SupplyHighly demanded profile since investors are not allowed to directly access the capital markets. They have to go through a broker in order to trade in securities.
Education RequirementCFP/CPA / MBA from Tier -1 Universities with at least 8-10 Yrs of Exp
Recommended CoursesCPA/MBA/CFA
PositivesA licensed broker from the stock exchanges to deal in a broking business.
NegativesHigh-pressure job since the business is totally dependent on the investors who will trade.

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This has been a guide to Careers in the Capital Market. Here we provide the list of top 5 capital market job options, career paths, and role descriptions. You may also have a look career articles in Finance –

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