So You Want a Career in the Stock Market?

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There are a few skills you’ll need……

• You’ll need to be good with numbers….

….and be willing to work long hours

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• You need to always stay current with market happenings….

….and a good education won’t hurt!

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But what job is right for you?

Financial Advisor or Stockbroker

• Financial advisors buy and sell stocks on behalf of their clients

• In addition to the skills already mentioned, you’ll need excellent people skills

• Advisors will need to actively seek new customers and follow up on leads

• Financial advisors are expected to be able to cross-sell their firm’s products and services

• There is NO formal education requirement!

• But, you’ll need to pass the rigorous Series 7 exam (national investment laws), and either the Series 63 or 66 (state investment laws), as well as obtain insurance licenses

• Only about two-thirds of test-takers pass the Series 7, which covers stocks, bonds, funds, and other investments

Source: Andy Hill

Trader• Similar to a financial advisor in

that a trader buys and sells securities, but for their own account (or their firm’s), not directly for clients

• There is NO formal education requirement, but most traders have either a Bachelor’s degree or an MBA

• Like a stockbroker, you’ll need to pass the rigorous Series 7 exam and either the Series 63 or 66

• Traders can work at banks, asset management firms, hedge funds, or for themselves

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Quantitative Analyst• Quantitative analysts, or “quants” use mathematical methods to solve

financial and risk-management problems• Many quants have a PhD in a non-financial field, such as mathematics,

physics, or engineering• The high demand for quants has given rise to “financial

engineering” programs in many colleges and universities• Quants are the mathematical “superstars” of finance, and have good

programming skills• Quants can specialize in certain areas of finance such as

• Risk management• Statistical arbitrage• Derivatives pricing• Algorithmic trading

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Investment Banker• Investment bankers perform

analysis and give advice to companies, governments, and other entities regarding various investments like M&A deals

• Investment bankers usually have an MBA from a competitive institution

• Investment bankers need excellent communication skills, both oral and written

• Presentations, pitches, and meetings are a big part of the job!

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Financial Analyst• Financial analysts recommend

to their clients when to buy and sell investments

• Must be able to analyze and interpret financial statements and other reports

• Analysts prepare reports, forecasts, and graphs that are easy for their clients to read and understand

• Many work for banks or insurance companies, as well as for brokerage firms

• A minimum of a Bachelor’s degree is required, but most have a Master’s in a finance-related field

Starting a career in the stock market can be hard

work!

But the payoff can be huge…

But the payoff can

be huge!

• According to glassdoor.com, some of these careers can be quite lucrative• The top 10% of financial advisors

earn more than $166,000• The average quant or investment

banker makes about $100,000 per year

• The top traders can earn millions of dollars per year!

Do you have

what it takes?