Review of computer brokers::how do brokers make their money
Review of computer brokers::how do brokers make their money
Stock brokers are a very important part of our economy. They buy or sell shares on the market for other people (their investors). They help provide funding to small startup companies and are also important sources of funding for major businesses, all while improving the financial situation of their investors. What is a stock broker? A stock broker is someone who invests in the stock market for individuals or corporations (Stockbroker). The investor speaks with the broker and tells them what they want, then the broker gives this info to a trader at the company headquarters. If the request cannot be met with the company the stock is placed with a floor broker or electronic trading service (Securities, Commodities, and Financial Sales Agents). Brokers also give advice to their clients about what they think would be their best choice to invest in (Stockbroker). Stockbrokers exist because although only 20% of stocks are owned by small investors, the majority of investors are small and are required to go through a brokerage firm in order to buy or sell stock (Securities, Commodities, and Financial Services Sales Agents). They are also needed because most people don't have enough knowledge of the stock market to invest wisely and they give advice to those people on financial decisions (Stockbroker). Stock brokers work with other occupations in their cluster in many different ways. The first way is they have to relay their trades to traders or floor brokers so that they can be given to the exchange. They also work with financial planners who give more in-depth advice to their clients (Stockbroker). There are three different types of stock brokers: normal brokers, floor brokers, and independent brokers. Normal brokers are those who work for a brokerage firm and buy/sell for most small investors. Floor brokers are those who work on the exchange floor and negotiate deals and trades. Independent brokers are those who buy/sell stocks for their own accounts, for corporate accounts, or for overwhelmed brokers (Securities, Commodities, and Financial Services Sales Agents). Most brokers are located in the major cities and around stock exchanges. Stock brokers have many responsibilities. They need to ca people in order to get more clients, advice their clients, and be able to work in a hectic work environment. They are often required to work long hours- especially in the beginning of their career when they have to call potential clients. They also work odd hours and are required to be cal during holidays and weekends (Securities, Commodities, and Financial Services Sales Agents). Stock brokers belong in the business and administration cluster. This cluster mainly focuses on providing management and support services for companies and businesses. This cluster is necessary in order to have any organized business, without this cluster we would be relegated to hunting and other manual labor because our society is based off of our businesses. This cluster includes secretaries, accountants, small business owners, CEO's, and any other job supporting a business. In order to become a stock broker it is required to have passed the Sector 7 exam and to have taken on-the-job training at a brokerage firm. Although a college-degree is not required, it is highly recommended to have a degree in economics, business, or other financial majors. Another thing that is very useful in getting a job is prior-job experience, because being a stock broker requires good sales skills as well as financial prowess and those who have succeeded in the sales field are desired (Securities, Commodities, and Financial Service Sales Agents. Enhanced Occupation Outlook Handbook). One school that offers S7 preparation is the "Empire Stockbroker Training Institute." It is located in N.Y and entrance is decided based on ability and interviews. A brokerage firm that offers internships is Dean Witter. This company is located in New York and they allow people that impress them in the interview in, although only a few are retained at the end of training. Another school that trains stockbrokers is "Stockbroker's Training School". They provide textbooks, live instructors, and other to companies to train their interns. Sample tasks required during an internship would be competing for clients through cold calling, running a large number of small accounts while taking ongoing training in the different aspects of being a stock broker (Securities, Commodities, and Financial Service Sales Agents). The cost for the training is paid for by the interning company, although extra training like the "Empire Training Institute" costs extra. There are many internship opportunities, because almost all companies train their stockbrokers themselves and all stockbrokers need to be interned for four months before taking their exam. Scholarships are not given, because companies either pay you very little or nothing during your internship (Best College Internships). The path to becoming a stock broker begins with one of three options: a sales job/other job in the financial sector, getting your college degree in a financial area, or entering an analyst's position directly after college. To advance from a sales or financial sector job to an internship at a brokerage firm it is required to have good references, ample job experience, good interviews, and success in previous jobs. To advance straight out of college requires very good interviews and interpersonal skills. Those who succeed in the internship are rewarded with a commission based position where good performance is rewarded with more clients as well as corporate accounts. This gives better pay but requires more availability. Advancing from an analyst position requires 2-3 years on the job and is dependent on performance. Stock brokers with a fixed salary advise and help clients of the bank. Depending on performance, stock brokers with a fixed salary can advance to vice president where they get better pay and supervise the stock brokers. Some vice presidents are advanced to become directors/executive directors which mean that they supervise the vice presidents and handle the very large bank client's accounts (Securities, Commodites, and Financial Services Sales Agents). The path to becoming a stock broker begins with one of three options: a sales job/other job in the financial sector, getting your college degree in a financial area, or entering an analyst's position directly after college. To advance from a sales or financial sector job to an internship at a brokerage firm it is required to have good references, ample job experience, good interviews, and success in previous jobs. To advance straight out of college requires very good interviews and interpersonal skills. Those who succeed in the internship are rewarded with a commission based position where good performance is rewarded with more clients as well as corporate accounts. This gives better pay but requires more availability. Advancing from an analyst position requires 2-3 years on the job and is dependent on performance. Stock brokers with a fixed salary advise and help clients of the bank. Depending on performance, stock brokers with a fixed salary can advance to vice president where they get better pay and supervise the stock brokers. Some vice presidents are advanced to become directors/executive directors which mean that they supervise the vice presidents and handle the very large bank client's accounts (Securities, Commodites, and Financial Services Sales Agents). There are many opportunities for stock brokers to find work. There are available positions for established stock brokers or stock broker trainees in a firm called National securities based in New York City but with locations throughout the USA. Applicants must email Jrhee@NationalSecurities.com or call 646-292-5001 and ask for Joon Rhee. The salary is commission and fee based and it is highly recommended that applicants have a Bachelor's degree in either Business or Economics along with experience in the financial field (The Job Posting). Another job within the financial and business administration cluster is an entry level sales job at a growing company. No experience is necessary and applicants must call 215-441-0775 or email nickmaxell@trugreenmail.com. Another position available within this cluster is an accounting job in the accounts receivable section of an unnamed company. Applicants must call 1-800-624-9244 and the job is located in the Trenton area. A third job available within this cluster is Financial administrator of two Sears stores located in Fairless Hills and Wilkes-Barre, PA. Applicants must have a bachelor's degree in business administration, finance, accounting, or equivalent as well as more than 5 years of experience. Computer, administration, organization, and communication skills are necessary. Applicants must email their resume and salary history to DCHR8275@searshc.com (BCCT Classifieds 22 March 2009). A fourth job opening in this cluster is a job as finance manager of Parkeon. More than five years of job experience is required as well as a bachelor's degree and a minimum career level of manager. Applicants should visit www.parkeon.com or apply through monster.com (Finance Manager Job in Moorestown,NJ). There are many benefits and a few disadvantages to being a stockbroker. The average salary for a stock broker is $68,500 but varies between $31,170 and $145,600 (Securities, Commodites, and Financial Services Sales Agents). Beginner stockbrokers normally begin with a fixed salary that gradually decreases as they get more clients and higher commissions (Morken, Interview). Benefits are normally very good and include health care, retirement, and life insurance. They may also receive discounts on financial services. Stock brokers are often required to be available on holidays and to work odd hours. They also may be required to be up early or late to watch non-national markets. They can expect to be called by clients at any moment. This causes stress on their family and limits stress-free family time. Thoughts of the market will never be far from their mind. They will never be able to have time where they know they won't be interrupted. This can cause health problems as well as marriage problems. Other benefits that stock brokers may receive include paid lunches with clients, paid dinners for late nights, and extensive travel opportunities. These benefits depend on the dedication of the worker to their job. The disadvantages of this job would be the extra time required, the odd hours, and the extra stress put on family and other relationships. These would be offset by the other benefits of the job including a good salary, health benefits, retirement, and other small benefits (Securities, Commodites, and Financial Services Sales Agents). Some different volunteer opportunities that might help prepare someone to become a stock broker are helping someone do their taxes, finding sponsors for a walkathon or other similar event, or helping a charity find donors, or selling a product for a charity. Some places that would have opportunities for this kind of work are individual persons, schools, charities, churches, and other not-for-profit organizations that require funding. At TKCS there are opportunities for finding sponsors and for selling a product. Churches also frequently sell products to raise funds. Helping someone with their taxes would help people to become more comfortable with finances. Finding sponsors, donors, or selling a product for a charity would improve people skills, sales ability, and the ability to find clients, which are all skills stock brokers need. Volunteering in these positions would also help a potential stockbroker to know whether that job would be right for them. If they found that they did not like to sell things to people or to ask them to sponsor them then they probably will not enjoy asking people to become their clients. If they had trouble helping someone with their taxes then they might not enjoy working with numbers which means they would not enjoy being a stockbroker. (Securities, Commodites, and Financial Services Sales Agents). A typical day for a stockbroker begins with him arriving at his office and eating a company provided breakfast (Securities and Stockbroker Career Information). He then might spend an hour studying the stock market. After that he may call one of his clients and advise him on what he thinks he should do with one of his stocks. After getting approval he then sounds out the order to the floor of the stock exchange. After the stock has been bought, the broker informs his client of the price and transfers ownership of the stock to his client. The broker then fills out some final paperwork and the transactions is completed. The broker then repeats this process again for another trade. New stock brokers must arrive earlier and leave later because they must call people to try and build up a client base. Stockbrokers generally work from nine to five unless they are new (Stockbroker). Stock brokers are a very interesting career that pays well and provide freedom but requires hard work and dedication. They are important to our economy and they won't be disappearing any time soon. Burlington County Times Classifieds. March 22 2009. "Finance Manager Job in Moorestown 08057 New Jersey US". Monster.com. March 25 2009. . Morken, Stan. Interview. 04 March 2009. "Securities, Commodities, and Financial Services Sales Agents". Bureau of Labor Statistics. March 25 2009. . "Securities, Commodities, and Financial Services Sales Agents". DiversityWorking.com. March 25 2009. . "Securities, Commodities, and Financial Service Sales Agents". Enhanced Occupation Outlook Handbook. Indianopolis: Jist Publishing, 2003. "Stockbroker". Princeton Review. 04 May 2009. . "Securities and Stockbroker Career Information". ProSchools. 04 May 2009. . "The Job Posting". Brokerhunter.com. March 25 2009. . |
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