Investments Industry Careers
How to Start a Career in Invesments
Buying and selling securities (stocks, bonds, and shares in mutual funds), commodities (futures, contracts on metals, energy supplies, agricultural products, and financial instruments), and other investments is a complex business. Investors make money from dividends and by reselling their investments. Investment firms generate revenues in their role as middlemen wherever these transactions take place.
The primary careers in the investments industry provides are brokerage, investment banking, financial management, and financial advising. Brokerage firms facilitate the buying and selling of securities and commodities. Full-service brokers manage their clients' entire investment portfolios. On-line trading services provide access to do-it-yourself software tools that clients use to conduct low-fee trades. Investment banking is a service that helps governments and new businesses raise money by matching them with investors who wish to buy bonds or initial public offerings (IPOs) of stocks. Financial managers include managers of trust, fiduciary, and custody activities as well as portfolio managers. Personal financial advisors focus more on advising investors than managing their assets.
Investments idustry careers in this fast-paced, competitive world include:
Job Responsibilities:
- Ensures the accuracy of financial statements and public records
- Advises management of financial decisions, including tax consequences
- Audits the financial and other operations of the company
Recommended Qualifications:
- Bachelor's degree in accounting
Median 2004 Earnings: $51,000
Financial Analyst
Job Responsibilities:
- Analyze companies' financial statements
- Evaluate market trends
- Determine fair market values of companies that are "going public" or are involved in mergers or acquisitions
Recommended Qualifications:
- Bachelor's degree in business administration, marketing, economics, accounting, industrial relations, or finance/li>
Median 2004 Earnings: $62,000
Financial Manager
Job Responsibilities:
- Directs firms' investments
- Prepares financial documents for regulatory purposes
Recommended Qualifications:
- Bachelor's degree or MBA in economics or finance
Median 2004 Earnings: $130,000
Personal Financial Advisor or Financial Planner
Job Responsibilities:
- Advise individuals and businesses on financial matters, including investments, retirement planning, tax management, estate planning, and employee benefits
- May sell financial products
Recommended Qualifications:
Median 2004 Earnings: $63,000
Portfolio Manager
Job Responsibilities:
- Manages investments of large clients, such as mutual funds, pension funds, trust funds, commodities pools, and wealthy individuals
Recommended Qualifications:
- Bachelor's degree or MBA in business administration, economics, finance, or risk management
Median 2004 Earnings: $130,000
Traders, Market Makers, or Floor Brokers
Job Responsibilities:
- Make trades on the stock exchange floor or electronically via a computer
Recommended Qualifications:
- Bachelor's degree
- Must be licensed
Median 2004 Earnings: $85,000
Retail Broker
Job Responsibilities:
- Sell securities (security brokers), commodities (commodities brokers), or other financial services directly to the public
Recommended Qualifications:
- Bachelor's degree
- Must be licensed
Median 2004 Earnings: $85,000
Source: Occupational Outlook Handbook, 2006-2007 Edition; Bureau of Labor Statistics, U.S. Department of Labor.