Stock Broking

Stock Broking In India

Buoyed by flourishing stock markets and growing retail interest in equity and equity-related investments, Indian stock broking firms are on an expansion drive to improve their network into more cities and towns to entice clients into stock investments.

Stock Broking are not frowned upon any more in India. Stock Broking is providing youngsters with various scopes. A person who has done a Stock Broker course in India can find jobs in the subsequent areas:

•    Business Houses

•    Investment Banks

•    Stock Broking Firms

•    One can work as a dealer or as an analyst (to be an analyst one needs to be a Chartered Accountant or an M.B.A)

A stock broker is one who deals with shares. A share is a unitized ownership stake in a company's equity. Whereas stock is a piece of money – a share of a company – that a few years ago were represented on a document, and nowadays records are stored electronically.

A stockbroker possesses a number of shares; however an individual can choose how many of these one wishes to trade, so that perhaps some can be kept for oneself. Keeping an amount is understandable, because stock-broking is a very risky business. This is because the prices that shares are worth are never constant, they keep on increasing and decreasing, depending on how much money the company one is dealing with, is producing.

Some of the top most Stockbrokers firm in India is JM Financial Securities, Fortis Securities, Geojit Financial Services, Prime Securities, the recently listed ones are IL&FS Invest smart, India Info line, and Indiabulls they have seen big rise in their stock prices over the last 12-month period, mainly due to augmented business and rising stock markets. The stock broking firms provide Services of Share Broking in National Stock Exchange of India Ltd.

Stock Broking Houses

Stock broking house offers various financial services and products in such a way that it leads to best possible gains for the entities involved in these dealings.

The stockbrokers are not only concentrating on towering sensex but also busy recruiting people to manage their expanding network. Stock broking houses are likely to create over 50,000 job opportunities in next one year for diverse functions. The broking houses are hunting for people to work in such areas as system maintenance, back office, and marketing. They are also in need of dealers, customer relationship managers, and analysts. Stockbrokers are also looking for sophisticated IT professionals to maintain their offices.

All well-known stock broking houses such as Indiabulls, Anagram Stock Broking, Fortis Securities, Apollo Sindhoori Capital Investments and several other home players are expanding their networks. At the same time, growing trading on commodity exchanges has also fuelled the growth of the markets ensuing in demand for more work forces. The opinion leaders in the sector are of the opinion that the educational institute should now focus on introducing focused courses for training students about stocks and commodity trading.

The broking house is confident to retain graduates for longer as they usually avoid taking risks and venture out to looking for better projection due to lack of degree. However, the sector is also facing competition from the BPO houses in attracting talent. The outsourcing of financial services has resulted in demand for candidate with commerce and finance background. The outsourcing companies are proving better paymasters for the fresher with right qualifications and control over language.

Having witnessed a high level of consolidation in the last 3-4 years, the domestic stock-broking houses could tap the IPO market to raise finances for their expansion, besides acquisitions and mergers.

Stock Trading Services

One can build fortunes through seizing opportunity in the markets. However, the key success factor here is to be aware of markets, their movements, and their various risk tolerance. One can exploit various opportunities in the market like short-term trading, momentum stocks, IPO’s, commodities and futures and options.

Short term trading is trading in stocks for a period of less than one year and the gain on such trade can be used to an individual’s advantage. Momentum stocks are the stocks, which have vibrant movement in the market due to a certain corporate developments, the demand supply gaps or due to other market expectations, this is even more important taking into account the inflation effect.

The primary market routes the investment in the equities. The shares of companies are actively traded where investors can earn a good return by investing through secondary markets. For investing in equities, it is required to have a broking account as well as a demat account in the absence of which participation in markets is not possible. A demat account can be opened with a depository member where the securities can be kept electronically.There are basically three types of stock broking service.

•    Execution-only, which means that the broker will only carry out the client's instructions to buy or sell the stock.

•    Advisory dealing, where the broker advises the client on which shares to buy and which one’s to sell, but leaves the final decision to the client.

•    Discretionary dealing, Is where the stockbroker ascertains the client's investment objectives and then makes all the dealing decisions on the client's behalf.

A broking account with a broking house is open for buying and selling of securities. According to several studies, equities have given one of the highest annualized growth rates in the long term compared to other investment avenues like gold, and the fixed deposits etc.

Stock Broking Business

Stock Broking when found was made to act as service provider for the client who wants to invest in the Stock market. A single person can’t invest much many capable to run a business in market and that is the reason why brokers came. Broker’s main function is to have enough number of investor so that hansom money can be invested in the market. In present days the Stock Broking has become a business, the broker takes a share of transaction as his fees for each and every transaction. This is approximately 0.05 of each 1 point transaction. This amount is basically known as brokerage.

There are various stock broking firms available which carries out business in various ways. Some of them are at international level while others now-a-days are from Banking sectors. Some of them are as follows:

Emkay Share and Stock Brokers: Emkay is one of the well known stock brokers in Mumbai India. It gives various facilities like investing, transacting, planning and maintaining the portfolios. They also help in trading commodities via ‘Emkay Commotrade Limited’ because they are the members of both MCX and NCDEX.

http://www.emkayshare.com/

Angel Broking Ltd.: 20 years old Broking firm which also helps in wealth management. It is member of BSE, NSE and also deals in commodity market i.e. is member of MCX and NCDEX.

http://www.angelbroking.com/about_group.asp

Sharekhan Ltd.: It is also one of the well known brokers in financial market i.e. what a person gets from sharekhan is a wide information depth. Even this is member of BSE, NSE, MCX and NCDEX.

http://www.sharekhan.com/

Indiabulls: One of the highest rankers in financial sectors for broking which shows interest in Real Estate, Broking, Commodities, Multiplex, etc.

http://www.indiabulls.com/default.htm

Motilal Oswal Securities Ltd.: It was found by two brokers in 1987. The firm deals in wealth management, commodity trading, private and institutional equities, portfolio management system, etc.

http://www.motilaloswal.com/