The number of dollars that change directions on the main securities exchanges within the U.S. each day is in the hundred billions. Stocks, mutual funds, bonds and several other types of securities are bought using this money. A stock broker sells these products professionally.
What exactly do stock brokers do?
Mainly they sell securities to retail investors. The sheer volume of securities makes it necessary for retail investors to work with stock brokers rather than trading amongst themselves. The initial step taken by investors is a discussion with the broker regarding trade terms. Afterward, the broker relays this data to a trader for the security company. The request is placed on an electronic network by the stock trader, or it is placed with a broker at the exchange. Finding new clients and building a loyal customer base is crucial for all brokers. New clients are sought within social groups, using phone solicitation, business and personal contacts, and through giving investment courses or lectures.
What education level is required?
All stock brokers are required to have a bachelor’s degree. The most common degrees among brokers are a bachelor’s in business, finance, economics or accounting. Some brokers begin their career working in position offered to them after completing an internship. The majority of firms offer competitive training on the job for entry-level brokers. In order to stay updated on related products and services, persons interested in this field often attend conferences and seminars.
The FINRA (also known as the Financial Industry Regulatory Authority) makes it mandatory for all stock brokers to register themselves as representatives of the firm they work for. In order to register, brokers must pass the General Securities Registered Representative Examination (Series 7 Exam) and must also have worked for a registered firm no less than four months. In most states, it is also required to pass the Uniform Securities Agents State Law Examination (Series 63 or 66 Exam). Registered representatives are required to complete certain education courses occasionally, in order to maintain their licenses.
What is the job outlook?
The outlook for this position is projected to grow at a much more rapid pace than most other professions, with an expected increase of 25% between 2006 and 2016. This expected growth will be the result of more Americans choosing to invest in securities.