Individuals who are interested in pursuing employment in the financial industry have many different areas to choose from. Finance industry jobs include, but are not limited to, analysts, stockbrokers, and advisers. For all of these professions, a specialized education must be completed with a focus on economics, finance, or some related field. Financial professionals may work with individuals, families, institutions, and local and federal governments. Further licensing and certifications are required for each profession as well.
A broker is responsible for facilitating trades in the financial markets on behalf of investors, including individuals, corporations, and governments. This licensed professional is typically needed in all stock market transactions unless a company is selling shares through a dividend reinvestment plan (DRIP), which allows investors to purchase stock directly from a corporation without a broker. Finance industry jobs in this segment can often be found in major financial districts or cities.
At the very least, a stockbroker typically achieves a college education but must also earn broker licenses. In the U.S., common certifications for these finance industry jobs are the Series 7 and the Series 63 exams. These tests are administered by the Financial Industry Regulatory Authority (FINRA). Brokers who trade commodities, such as futures and options contracts, are required to pass either a National Commodities Futures Examination or a Series 3 exam in the U.S., a test given by the National Futures Association.
Financial advisers provide investment advice to clients, including large and small investors. These finance industry jobs allow professionals to guide investors through the markets to make the best decisions under current economic conditions. Asset allocation is one service that a financial adviser might perform by making recommendations to clients about which asset classes to invest in and how much money to allocate to each category. These asset classes range from stocks and bonds to commodities and real estate with further breakdowns of each group.
Analysts provide research and performance projections to the financial community and represent another type of finance industry jobs. The extensive research performed by financial analysts includes combing through the financial statements of corporations to gauge the financial health of that entity. Financial analysts predict what a company's net income and revenues should be in the future based on that research, while companies set their own financial expectations. Economic conditions in a region also influence an analyst's opinion on a region or an investment. Investors are given straightforward advice by analysts on whether a financial security is one that should be bought, sold, or held.
