Capital Market is where the trading of financial securities between buyers and sellers takes place. It mainly focuses on the long-term securities of these bonds. Depending upon the magnitude, the role of a capital market can be directly connected to a nation's economy, with any change in one can cause ripples in the other one.
This is why a revolution in this industry will have more impact and also why investment banking is a more potential career. The investment banking career is highly competitive and ambitious.
Role of a Capital Market
The Capital Market includes both the bond market and stock market. Businesses use this market to get funding for supplies and resources. It helps generate a financial market by selling bonds or stocks of a company.
The bond market is where the trading is mostly on debt securities. Buying a bond does not give any amount of ownership to the business. It simply enables the capital amount to be traded from one party to the other. It is considered as a loan or debt which has to be repaid. On the other hand, the stock market has trading where investors invest in buying shares of a business.
When stocks are sold, buyers get partial ownership in the business in exchange. To make it available in the market requires the help of a banker who can prepare the necessary documents and complete the processes.
Importance of Capital Market
- Capital Market is essential for business owners to get financial aid to expand their business.
- It reduces the business cost through the global economy and works as a reliable resource for liquidity.
- It helps the buyers and sellers together in a single platform to boost the economy, nationally and globally.
- Businesses can find finance with reduced risks at these reliable markets.
Investment Banking career
An Investment Banker is a responsible person who advises and facilitates investments for clients or businesses. They will need to keep track of the Capital Markets and act as an interface to help them in capital investments and help them raise the necessary capital for their plans. An investment banker must also have an understanding of the volatility of the capital market.
People who have a certificate in investment banking can start their careers in this industry. The investment banking career is lucrative as it opens the way for higher compensation. Those who are interested in accounting, finances, or mathematics can easily have a career in this industry. Growth in this industry is faster but it requires performance consistency.
Best course for investment banking
A certificate in investment banking is valuable when it provides in-depth knowledge in the various aspects of financial and capital markets. Courses like CIBOP ( Certified Investment Banking Operations Professional) are short-term but cover the most relevant aspects in this industry.
It also helps in placements after providing hands-on experience in trading and other case studies. This will prepare the aspirants to face the common challenges in Capital Markets and investment banking.
The opportunities in Capital Markets after such courses include the roles of Capital Market Operations Consultant, Financial Analyst, Risk management Consultant, Investment Banking Operations Lead, etc. There are plenty of opportunities for beginners and a career change for professionals.
Investment Banking is now one of the most popular career options and there is a large pool of talent across the globe. But this is one career that requires working at odd hours to complete a particular pitch book. It is a highly pressurizing job and only those with competitive skills can thrive under the stress.