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Sales Agents, Securities, Commodities, & Financial Services
The Securities Broker income is, to a great extent, in proportion to knowledge, initiative, energy, sales ability, and time spent in generating business. Brokers usually receive a percentage of commissions generated, which vary according to the firm, type of security sold, and total sales. A growing number of firms base compensation on portfolio performance, types of assets managed, or other indicators of performance. Local Wages Hours & Benefits Fringe benefits vary from firm to firm. Profit sharing, retirement benefits, and employer paid health insurance are becoming more prevalent. Moreover, the knowledge brokers gain about general economic conditions gives them an advantage in deploying their own capital. Employment Trends Employment Trends by California County The cyclical nature of the economy can greatly affect the employment prospects for Securities Brokers. During periods of declining market values, investors are less likely to invest their funds in securities. Correspondingly, when the market is rising, and investment activity is increasing, the need for brokers is greater. The number of institutional investors is expected to rise as more people enroll in pension plans and individual retirement accounts, establish trusts, and contribute to endowment programs of colleges and other nonprofit institutions. Getting the Job & Other Information Prospective brokers may apply to brokerage firms directly, or register with their college placement bureau and private employment agencies that specialize in this type of position. Newspapers and financial publications sometimes carry advertisements soliciting experienced Securities Brokers or trainees. For current job listings, browse CalJOBS or America's Job Bank.
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Education and Training Educational and employment histories vary among practicing brokers; however, a college education is becoming more important since brokers should have a knowledge of world and economic conditions. Most new brokers come directly from college, and some have had previous business experience. Persons who possess a well-rounded academic background including courses in business and finance have the best employment prospects. Experience in sales or public contact work is regarded as desirable, with particular value placed on positions which involve meeting people with diverse backgrounds and interests. Consideration is also given to recognition achieved for extracurricular campus activities. The larger brokerage houses normally provide a four to six month training program for new hires, including three to four weeks in New York. On the other hand, some of the smaller "houses" may only hire experienced brokers. Following this, the broker will be expected to generate the minimum volume of business stipulated by the firm to maintain employment. Upon completion of training, employees must pass the General Securities Registered Representative Examination, administered by the National Association of Securities Dealers, Inc. (NASD), pass another examination, in most states, and be an employee of a registered firm for at least four months. Skills & Other Requirements Working Conditions The broker is subject to regulations of the Securities and Exchange Commission, the stock exchanges, the National Association of Securities Dealers, and the State of California. Advancement Although the title carries prestige and additional responsibilities, it does not guarantee a higher income. Partners represent their firms on stock exchanges, direct branch office activities, and manage a department in the company. References Related Occupation: Insurance Sales Agents #455 Training: California State Training Inventory |