Stock Trading: A bright career avenue for CAs!
With financial markets around the world getting more unpredictable, the need of the time is qualified and mature professionals who understand the field well. With such diverse opportunities, stock trading could prove another lucrative profession for all those chartered accountants out there.
Students often confuse stock trading with stock broking. In spite of the fact that both of these professions deal with buying and selling securities, stock traders necessarily handle the work for a large investment management firm. As a result the stock traders trade securities specifically on behalf of the assets the firm manages. Whereas, the stock brokers specifically deal with individual clients and their assets only.
Opportunities for Chartered Accountants in Stock Trading
Chartered accountants in the area of stock trading offer consultancy, counselling and advisory services to the large investment management firms.
As a stock trader, a chartered accountant advises shareholders and help manage portfolios. They offer research and advice on buying and selling bonds, stocks, futures and shares in hedge funds. A person with a CA profile is most suitable as he already has immense knowledge of taxation, finance and laws in India.
Since chartered accountants already have a strong background of commerce and economics, they feel comfortable carrying out extensive research and observation of how financial markets perform.
CAs that get appointed as stock traders must carry out microeconomic studies and industry specific technical analysis to track assets or corporate performance.
Is a CA course enough for stock trading?
After completing the Chartered Accountancy course from the Institute of Chartered Accountants of India (ICAI), interested candidates must seek internship in a financial company. Existing CAs also opt for doing a correspondence or part-time MBA courses in advanced stock market analysis.
You can also get a certification called NCFM FLIP Equity Research Certification (http://www.nseindia.com) that focuses on researching stocks to arrive at a price for it.