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First of all let us understand the meaning of financial services. Some people consider financial services as the help with finance or money. Suppose some individual helped you with money in the form of loan. So you may say that he provided you with financial services. But its not always so. Let us take an example. Consider a bank. Suppose you have a saving or current account with a bank. Once you have a bank account its for sure that you have the right to deposit or withdraw your money any time. The bank here is not providing you with any new money(unless you apply for a loan from bank) when you withdraw your money from your bank account. The bank is actually giving you your own money. Now will you say that the bank provided you with financial services? Here the bank actually just manages your money and dont provide you with new money(unless you apply for a loan). This service provided by bank to manage your money is also called financial services. So what is actually involved in the financial services is the management of money or securities(shares, bonds etc) of the customers and also provide them with new money(like loans).
Not only the banks manage your money but there are a broad range of organizations that deal with the management of money or securities. Among these organizations are banks, insurance companies, credit card companies, stock brokers, consumer finance companies, investment funds and some government sponsored enterprises. So all these organizations also provide you with financial services. Consider the case of stock brokers. What do they do? When you buy shares or stocks you need the help of stock brokers. They buy and sell shares on your behalf and earn commission on every sale or purchase made. So here the stock brokers manage your money(in the form of shares) and so they are also called to provide you with financial services. Many banks provide online share trading and earn commissions from customers on every sale or purchase made. So here banks themselves act as stock brokers. Stock Brokers buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors(customers).
If you are looking for any business opportunity or career in financial services industry then becoming a stock broker could be one of them. The average stock broker salary may be in excess of $175,000 for retail stock brokers and about double that figure for institutional stock brokers, while the average investment banker may take home about $850,000 in pay and bonuses. So a profitable business. Also to become a stock broker doesnt require any specialized qualification. To become a stock broker, you need to get on the job career training with a stock broker firm and obtain a license, after passing the General Securities Registered Representative Examination. Before you can sit for this examination you have to undergo on-the-job stock broker training with a brokerage for at least four months.
There are also privately held companies which provide investment management services which involves the quality investment advice to investors, which enables structured portfolio’s to be created, based around the individual’s investment needs and risk levels. Though these companies are private limited but, because of obligations in connection with bond debt, they are registrant with the Securities and Exchange Commission (SEC). This is another business which one can do in finance industry where the job is to provide clients with portfolio management services. Will need to get a company registered to start with such a business having lot of scope and profitable as well. There are investment banks also which offer strategic advisory services for mergers, acquisitions, divestiture or other financial services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities. Investment banks differ from commercial banks which are only meant for savings and current accounts and also provide loans. There are not much options to start with a business in finance industry as this is most difficult industry to choose with great risk level.
Related directory categories
Debt
Financial Services Directory
Investment Services
Investment Management
Commodity Brokers
Stock Brokers
Finance For Businesses
Futures And Options Brokers
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