Capital markets are the exchange place for long-term debt between those who have the capital to lend and those who need investments. Essentially, in a capital market, companies in need of money to launch or grow their business can gain access to it through banks and investors. The most widely known capital markets are the stock and bond markets.
Jobs in a Capital Market
If you want to work in capital markets, your role could involve helping companies raise funds by selling equity to investors, designing and managing a company’s stock portfolio, or evaluating a company’s potential financial risks, among others. Various titles can include Credit Analyst, Risk Manager, Fund Manager, and so on.
Regardless of what you do, the role calls for immense responsibility while also reaping the benefits through monetary rewards and perks. As a result, the recruitment process for a career in capital markets is selective. In this article, we share 3 keyways to ensure you make it to that interview call:
1. Knowledge of Finance:
1. What is a PEG multiple and when would you use one?
2. Could you describe what an FX forward is?
3. Can you tell me what a convertible bond is?
4. What is the formula for calculating working capital?
5. How do unlisted companies price their issues?
Hence, it’s best to have this in-depth knowledge beforehand so you can answer similar questions without hesitation. Specialisations like financial modelling and business analytics further make your profile stand out and will help you quickly learn the tasks at work.
2. A Rocking Resume
It’s no secret that any interview call almost solely depends on the resume. Hence, you must carefully craft one that helps you stand out. The most important categories in a resume are Personal Information (name and contact), Education, Work Experience, Skills, Volunteer or any other relevant experience.
3. Real-Time Market Knowledge
While textbook knowledge of financial and analytical concepts is quintessential in capital market positions, nothing will prepare you better for these roles than practical and real-time experience. If you are a young applicant such as a fresh college graduate, or better yet, if you are in college, you can plan to gain this experience early through internships or by joining your university’s finance or investing clubs. When you present this information on your resume, you are significantly increasing your odds of receiving the interview call.
1. Can you describe your process for evaluating a company’s value?
2. Can you tell me about a company you want to invest in or are already invested in and why?
3. How has COVID-19 affected the stock market in India?
4. How has the Russia-Ukraine conflict affected the markets in India/UK/U.S.?
5. What are the factors behind Sri Lanka’s devastating economic conditions?
So, it’s never too early to brush up on the ins and outs of finance and related fields.
Capital market roles are thrilling and offer an enormous learning curve. If this is a career choice that interests you, we’d recommend that you start preparing early, right from the time you enter university to gain an edge. From thereon, to inflate your chances of getting that much-desired interview call for roles, you’ll need to pay attention in those finance classes, work dedicatedly on your resume, and acquire as much practical training as possible.