Prime Brokerage
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Posted On :
Dec-09-2011
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Article Word Count :
562
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This article is about Prime Brokerage
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Prime brokers are persons that offer specialized services to their clients. A prime broker can offer his services such as securities lending, extension of credit margin, leveraged trade executions, and cash management. Prime brokers are also the main movers behind hedge fund transactions, and the industry to which they belong is called Prime Brokerage.
Prime brokerage firms are organization geared towards helping people have an interest in investing their money on big investments. These big money transactions are usually focused on stock or commodities sales or acquisitions.
Most prime brokers work closely with hedge fund managers and private individuals who are willing to invest a large sum of their money. The most important duty of a prime broker is to ensure the safety and the complete delivery of the commodities or stocks that has been bought or sold. Another important function of a prime broker is to look for new clients, as well as maintaining and keeping his current clients happy.
A prime broker’s job can be very demanding. Working as a prime broker can lead to lots of hours in the office. He must also be updated with current market trends and market movements. He should always be on the look out for financial opportunities and investments that he can present to his current clients.
But just like most type of brokers, being a prime broker does not need a particular gegree. However, having a bachelor’s degree in Management, Business, Finance, Banking, Economics, can land you a job in one of the prime brokerage in your area. The top prime brokerage companies on the other hand like to hire and bring in people with a Masters degree in Finance, Economics or Business Administration.
For those who are not familiar with the financial industry, or those who are coming from a different field, it is best to look for educational materials and training about investments and hedge funds. Enrolling in a prime broker or a stock broker training program would also help you a lot in grasping the concepts of investing in a short span of time.
Being a prime broker does not need any special training, State exam or even a government license.
In the United States, the Financial Industry Regulatory Authority or FINRA, a non government agency has taken the lead in requiring all persons that deals with financial securities such as prime brokers to register with them. FINRA is the successor of the National Association of Securities Dealers, Inc. or NASD, and functions as a self regulatory organization particularly among their members. FINRA is the largest regulator of all securities firms in all of the United States. Most of their tasks are focus on financial regulations in the financial brokerage and exchange markets including prime brokerage. For those who want to be recognized as a legitimate prime broker, you must also undergo the membership process of this organization.
Another way to give added value and reputation for your prime brokerage business is by joining the CFA Institute of Certified Financial Planners. This institute gives out certification to its members such as the Chartered Financial Analyst award. The Certified Financial Planner Board of Standards, Inc. is another must join organization for they give CFA Institute or the Certified Financial Planner (CFP) certification to their members.
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Article Source :
http://www.articleseen.com/Article_Prime Brokerage_116581.aspx
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Author Resource :
The author offers freight broker training, Insurance broker training and stock broker training advice. This training helps you in gaining knowledge in respective field and starting your own venture successfully. Through this article the author explains what prime brokerage is all about.
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Keywords :
Prime brokerage,
Category :
Business
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Careers
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