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How Should You Acquire Domain Knowledge In Capital Markets?

By July 22, 2019 No Comments

 

Domain knowledge in project management is crucial when making a career in a banking project sector. Hence it would be great to do a course when looking to make a capital market for beginners career in this core sector. When starting your career there are many questions as to what one should do to assimilate knowledge quickly so one can move into a good banking career. The capital markets world over may differ in product offerings, trading practices, and regulations. However, the one constant has been the growing demand for skilled capital market personnel in banking circles. 

What is the capital market?

The capital market instruments are: 

1. Shares: Share is a part of the ownership in the form of the share and forms the capital base of any company. The sharing unit can be traded in and many people hold shares to sell when the markets boom making huge profits.

There are two types of shares. Namely, 

  • Equity shares
  • Preference shares

2. Debentures: Companies issue debentures under the company’s seal as funds borrowed for a long term and form a part of the borrowed capital of the company. Such debentures carry a fixed interest rate and maturity period. These are the certificates issued

3. Bonds: To raise capital for projects governments and large companies issue bonds which are again long-term capital borrowings. Like the debentures bonds also carry a fixed interest rate and maturity period. The interest charged on such bonds is on the coupon rate.

4. Derivatives: These instruments derive from other underlying assets and securities. The selling price, function, risk, etc of the derivative depend on the assets underlying them.

Some examples of the Capital Market for beginners drawn from derivatives are

  • Futures
  • Swaps
  • Options
  • Exchange commodities
  • Traded Funds

Here are simple steps in a tutorial to increase domain knowledge especially in the capital market for beginners.

1. Research your knowledge to narrow down to your domain choices: 

For example, if you want to be a domain expert in banking you must narrow down to the capital markets from the various services offered by investment banks. Next, add questions and actions to research and act upon them. 

2. Question bank building:

Ask your questions of an expert on the subject of capital markets. 

What questions to ask depends on your question list and domain knowledge. Rather than ask an obvious question try asking questions like-Do all asset classes get mark-to-market action? How are bad loans monitored? and such.

When and whom to ask questions is important. Never ask domain technical questions to the executive or a domain operations question to the accountant! 

Record the answers for further reviews.

3. Do a course:

You have a variety of domain choices here related to the capital market domain.

·         WMI-Wealth Management Institute course

·         Do the CFA-Chartered Financial Analyst course

·         An MBA course with a finance domain focus

·         Do the MFE-Masters of Financial Engineering degree 

·         Get experience in domain work: To get practical hands-on skills many students opt to take the financial professionals course at a reputed institute like Imarticus Learning.

4. Attend events: 

This is the best place to learn more about domains. Build your domain knowledge with reading from 

  • Banking Associations / Magazines – FundSuperMart, The Asian Banker, WealthMatters, etc
  • Software vendors – FlexCube, Temenos, SAP, SilverLake, Finacle, etc 
  • Hardware vendors – HP, IBM and such
  • Consulting firms – Boston Consulting Group, McKinsey and Company, PWC, Accenture, IBM GBS, etc

5. Knowledgebase building: 

Create a base on hard disk from your records, questions, etc and build on it. Update it periodically and add indices to it to demarcate the domains.

6. Knowledge Communities: 

Join such communities for mentorship and issue resolutions in your domain from a peer group. You can teach, learn and explore domains at the same time!

7. Mentorship: 
This is crucial to emulate in domain expertise building.

8. Offer to help: 
This method is a great way of gaining hands-on information and experience in domain knowledge.

9. Update Solutions Knowledge: 
Technology is evolving as are standard practices. Hence do continued domain learning to get ahead of the career curve.

Wrapping Up …

Acquiring domain knowledge is not difficult. There exist SO MANY things you can do to acquire such knowledge. Firstly start with a plan, build knowledge bases through MOOCs and online reading, question all your premises, enroll in courses, and take the support of community groups.

Do your capital market for beginners course at Imarticus Learning because they help you in all the above aspects, offer excellent mentorship, prepare you for certification exams, and go further with assured placements.

Their course has a comprehensive part, modules on soft skills, resume writing, mock interviews, and personality development too. Enroll today! For more details and further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Hyderabad, Delhi, Gurgaon, and Ahmedabad. 

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