Investment Jobs
Companies and individuals often decide to invest some of their money. This sometimes involves buying shares in the capital (money and assets) of companies and organisations in order to make a profit.
There are some jobs that are concerned with advising people on how to do this, as well as in the actual buying and selling of stocks and shares.
Investment Analyst
Investment analysts study the performance of companies and industries so they can advise people where to make the best investments. There are stockbroker analysts and institutional analysts.
Stockbroker analysts examine information about companies and advise different clients on their investment potential. Institutional analysts work closely with investment fund managers in large institutions such as insurance companies.
Analysts take into account factors such as political and economic changes. They use financial modelling software, write reports and compile forecasts.
Commodity Broker
Commodity brokers buy and sell contracts for commodities such as petroleum, metals, financial products, coffee and wheat. They aim to make the most profit possible for their client.
Desk-based brokers act as a direct link between buyer and seller. Using telephone and computer links, the seller, broker and buyer agree a price.
Floor-based brokers work on the floor of a market, acting on the instructions given to them by desk-based brokers, eg, at the London Metal Exchange. Almost all exchanges have replaced floor trading with electronic trading.
Stockbroker
Stockbroking is a collective term that covers several types of career including market makers, traders, analysts, etc.
Private client stockbrokers buy and sell shares on behalf of clients, and give advice on financial matters. The Stock Exchange Automated Quotes System enables them to have access to the latest share prices and other essential financial information.
In their advisory capacity, stockbrokers help clients ranging from individual investors to large institutions. They base their advice on information from the financial press, computer information databases and the opinions of investment analysts.
Investment Fund Manager
Investment fund managers manage portfolios of cash funds, currency or property on behalf of clients who are looking for the best possible return on their investments. There are large amounts of money involved and there is a lot of responsibility as poor investments can result in clients losing money instead of increasing it.
Investment fund managers deal with the purchase and sale of investment packages and develop effective fund investment policies and strategies. They are also likely to have some staff management responsibilities.
Pensions Manager
Pensions managers establish and/or manage pension plans for private and public sector employees. These schemes provide payments for staff when they retire.
Managers monitor the performance and quality of the scheme and provide information about it.
Pensions managers advise the trustees and members of the scheme, after liaising with investment professionals. They must make sure that all legal and taxation requirements are met. They manage a department of administrative and clerical staff.
Independent Financial Adviser
Independent financial advisers (IFAs) provide financial advice for their clients. The products they are concerned with include mortgages, savings schemes, pensions and income protection policies.
New products are being designed all the time, so IFAs must keep up to date. They advise on products from any company, and it is this that gives them their independent status.
Market Maker
Market makers, sometimes called traders, create a daily marketplace for buying and selling stocks and shares on a range of electronic trading platforms including, primarily, the London Stock Exchange. It is their job to sell shares above the price at which they were bought.
They study supply and demand to determine the prices; they read financial newspapers and reports to obtain a picture of market trends. Market makers also use computerised information databases to obtain the latest financial news.
Buying and selling prices are set and securities traded with market makers, stockbrokers and other traders, using the Stock Exchange Trading Service (SETS) and the Stock Exchange Automated Quotations System, a computerised notice board.