Career opportunities in capital markets after TAPMI PGCP in Management program

Key takeaways: 

• Capital markets are among the most exciting and rewarding professions. 

• If you are interested in capital markets, TAPMI’s PGCP in management is the best place to start your career in banking and finance.

• After completing the TAPMI program, you can become a trader, analyst, fund manager, or any other finance-related career. 

Career opportunities in capital market

Capital markets are financial institutions that allow companies to raise money through stock and bond offerings. If you are considering pursuing a career in capital markets, and taking your career to the next level, this article is for you. 

The first stock market was established in Amsterdam in 1602. The goal was to provide a platform for companies to sell their business shares and raise capital from investors. The idea caught on quickly and spread across Europe, culminating in the formation of the London Stock Exchange in 1698.

Throughout these early years, European companies primarily issued stocks but did not make it to America until World War II ended. In the following years, there was strong demand for capital among American businesses. However, there was no place for them to sell their shares. This led Congress to create a legislation allowing companies to sell securities (i.e., stock) publicly for the first time in 1933 (the Securities Act).

Today, over 41,000 active companies are listed on stock exchanges worldwide, with a combined market cap value exceeding USD 80 trillion!

What is the capital market?

A career in capital markets, especially in banking and finance, has caught the attention of young job seekers. However, in order to measure its suitability as a career, you first need to  understand the nitty-gritty of capital markets.

Capital markets are the financial markets where capital is raised and traded in exchange of company shares. It entails both debt and equity markets. Capital markets are mainly where companies raise money by issuing securities such as stocks, bonds, or financial derivatives.

In such a market, investors can purchase shares of stock in an organization or company. These investments are typically made by individuals who wish to own a piece of the company’s success in return for providing the funds needed for expansion. The benefits of investing in the capital market include making money from the investment and earning interest on it until it is sold back.

The main participants in the capital market are governments, corporations, banks, pension funds, insurance companies, mutual funds, and individuals.

The advantages of capital markets are that they allow companies to access large amounts of money quickly (which is especially important for high-growth businesses), and they allow investors to diversify their holdings among many different companies (rather than buying one stock).

Types of capital markets

When a company or individual wants to raise money, they often do so through capital markets. Let’s take a look at the types of capital markets. 

• Primary market

The primary market is where an investor buys stock or bonds from the company that is raising capital. In the primary market, a company issues stocks or bonds to raise money for its operations. This means that investors buy those stocks or bonds directly from the company, using that money to pay for whatever it needs.

In the primary market, companies issue new securities that have never been sold. This can be done through an initial public offering (IPO), in which a company publishes new shares for the first time and then sells them to investors; or it can be done through other methods such as private placements, where a company sells its stock to a small number of investors without making an IPO.

• Secondary market

The secondary market is where investors can trade their stocks and bonds with each other after they’ve been issued. This means that when you buy a stock on Wall Street, your purchase isn’t creating new wealth—it is just changing hands from one investor to another.

In other words, the secondary market is where investors can buy and sell securities already issued in the primary market. Investors can buy or sell stocks, bonds, mutual funds, options, and other financial instruments through the secondary market.

Skills required to pursue a career in capital markets

If you are interested in pursuing a career in financial markets, a few skills will help you succeed. These include:

• Mathematical knowledge

Capital markets are highly mathematical, so you must have a firm grounding in mathematics for a career in banking and finance. You will need to understand complex financial formulas and concepts, as well as be able to perform complex calculations. In addition, you will need to be able to analyze data using statistical software packages such as Excel or R.

• Knowledge in economics

A background in economics can also be helpful for a career in the financial markets. Economics is important because it provides the foundation for understanding how macroeconomic factors affect the markets and how they may change over time.

• Programming skills

These days, it is not enough to be a good writer or analyst. It is important to have strong programming skills for a good career in capital markets. A career in HFT (High frequency trading) requires strong programming skills.

• Analytical skills

Analytic skills are crucial to working in capital markets. You need to be able to analyze market data, assess the value of assets, and make predictions about how they will perform. A job in capital markets requires you to think critically and apply your knowledge of trends and historical data to decide what will happen next.

• Communication skills

Almost every profession today requires good communication skills, so does a career in capital markets. It is important to communicate clearly with clients and customers. 

Demand for capital market roles

The demand for Capital Market roles is increasing as more companies seek to become publicly traded entities. As a result, career opportunities in capital market roles are expanding, and there are more jobs available than ever before.

Companies are looking for people with experience in capital markets to help them navigate this new business world. These professionals must have excellent communication skills and understand the needs of their clients and their own company’s objectives.

Because of this demand, many companies are looking to hire professionals who can step into these positions immediately. They want someone with experience working in capital markets but won’t require training or onboarding before they are ready to contribute fully.

There are several different types of capital market positions available.

 

Types of capital market positions

Investor Relations (IR)

M&A (Mergers & Acquisitions)

Equity Research Analyst

Fixed Income Research Analyst

Debt Research Analyst

Derivatives Research Analyst

Equity Sales Trader

Career prospects in capital markets

Capital markets is a broad term that encompasses the financial services industry. It includes banking, insurance, mutual funds, and hedge funds. Here are a few roles you can consider for a successful career in capital markets. 

• Business development manager

Business development managers are responsible for finding new investors to join the company. They work with portfolio managers and risk managers to find companies that would fit the portfolio well. Then they reach out to those companies to begin the conversation.

• Risk Manager

A risk manager is in charge of ensuring that all investments made by the company are safe and secure so that they don’t lose money or otherwise affect the overall health of the company. A risk manager will check in on investments regularly to ensure everything goes smoothly and is managed adequately by both investors and portfolio managers.

• Portfolio Manager

A portfolio manager’s job is to manage the investments made by their company. They will work with risk managers and business development managers to determine which companies should be added to their portfolios based on their potential for growth and their safety as an investment choice.

• Credit analyst

The role of a credit analyst involves assessing a borrower’s creditworthiness, typically in the context of a loan or bond transaction. Credit analysts usually work alongside other financial professionals (like accountants and lawyers) to determine whether or not a company or individual is capable of repaying any loans they have taken out.

Credit analysts also work with clients to ensure their accounts are in good standing. This means they keep an eye on client accounts and ensure that their clients aren’t over-borrowing or taking on too much debt.

• Relationship manager

A relationship manager is responsible for building relationships with clients, ensuring they are satisfied with their service or product, and helping them understand how to make the most out of it. A key responsibility of a relationship manager is to ensure that all customers get what they need from their company, whether it is financial advice, insurance coverage, or loans, and feel comfortable using it.

• Stock broker

Stock brokers are responsible for buying and selling stocks for clients, ensuring that all transactions go smoothly and legally. They also have insider information about a company’s performance, which can be used as part of their decision-making process when advising clients on whether or not they should invest in a particular deal. They typically work for brokerage firms, which are paid by commission. 

• Fund manager

A fund manager is a person who manages funds, which can be anything from an investment fund to a pension fund. They have to ensure the fund is doing well and making enough money for the investors who have put their money in it. They also have to decide which kind of investments will yield the best returns for the fund and then invest accordingly.

Courses that help you pursue getting into capital markets

If you are looking to break into the world of finance and make money a part of your life, it is essential to take one of the following courses –

• PGCP in Management 

A PGCP in management that includes capital markets as a specialization is a great choice to pursue a career in the field. Subjects like corporate finance, investment management and financial technology will help you gain sufficient knowledge in the field. TAPMI’s PGCP in management offers a specialization in capital markets, where you will learn all the in-demand skills required to excel in this career. 

• BBA in Financial and Investment Analysis

Bachelor of Business Administration (BBA) in Financial and Investment Analysis is a course that helps you gain knowledge about financial markets and how to use them for your benefit. This course is designed for students interested in learning about finance, stock market, and other related topics.

• Certificate in FMAT

The Certificate in Finance Management and Accounting Technology (FMAT) program provides students with a comprehensive understanding of finance and accounting concepts, principles, practices, theories, systems, and procedures as business organizations apply. It also provides students with extensive knowledge on how to use these concepts to solve finance management and accounting technology problems.

• NSE Certified Capital Market Professional (NCCMP)

The NSE Certified Capital Market Professional (NCCMP) course is an entry-level program that helps you develop a deep understanding of capital markets, including equities and derivatives. The course consists of two modules: Stock Markets and Financial Derivatives.

• Masters in Financial Management

A master’s degree in Financial Management (MFM) helps you gain a comprehensive knowledge of financial markets, including equities and derivatives. It also provides a solid foundation in economic theory and practice, which is essential to working as a professional in the field of finance. The course also helps students develop leadership skills necessary to succeed in the corporate world.

Final Word 

The modern capital markets job market requires professionals to be as well-rounded as possible. TAPMI’s management course available on the Online Manipal helps students gain more skills and experience in their field. Whether you want to become a management professional or work in finance, the exclusively designed TAPMI program will prepare you for the challenging field of capital markets.

The courses will help you grow professionally, whether learning to handle complex business problems or becoming a finance expert.