Securities and Financial Services Sales Workers
Nature of the Work
Securities sales workers. Most investors--whether they are individuals with a few
hundred dollars or large institutions with millions to invest--call on securities sales workers
when buying or selling stocks, bonds, shares in mutual funds, or other financial products.
Securities sales worker often are called registered representatives, account executives, or
brokers.
When an investor wishes to buy or sell securities, sales workers may relay the order
through other firms' offices to the floor of a securities exchange, such as the New York
Stock Exchange. There, securities sales workers known as brokers' floor representatives
buy and sell securities. If a security is not traded on an exchange, the sales workers send
the order to the firm's trading department, which trades it directly with a dealer in the over-
the-counter market. After the transaction has been completed, the sales worker notifies the
customer of the final price.
Securities sales workers also provide many related services for their customers.
Depending on a customer's knowledge of the market, they may explain the meaning of
stock market terms and trading practices; offer financial counseling; devise an individual
financial portfolio for the client including securities, life insurance, tax shelters, mutual funds,
annuities, and other investments; and offer advice on the purchase or sale of a particular
security.
Not all customers have the same investment goals. Some individuals may prefer
long-term investments designed either for capital growth or to provide income over the
years; others might want to invest in short-term securities that they hope will rise in price
quickly. Securities sales workers furnish information about the advantages and
disadvantages of an investment based on each person's objectives. They also supply the
latest price quotations on any security in which the investor is interested, as well as
information on the activities and financial positions of the corporations issuing these
securities.
Securities sales workers may serve all types of customers or they may specialize in
one type only, such as institutional investors. In institutional investing, most sales workers
specialize in a specific financial product such as stocks, bonds, options, annuities, or
commodity futures. Some handle the sale of new issues, such as corporation securities
issued to finance plant expansion.
Beginning securities sales workers spend much of their time searching for
customers--relying heavily on telephone solicitation. They may meet some clients through
business and social contacts. Many sales workers find it useful to get additional exposure
by teaching adult education investment courses or giving lectures at libraries or social
clubs.
Financial services sales workers. Financial services sales workers call on various
businesses to solicit applications for loans and new deposit accounts for banks or savings
and loan associations. They also locate and contact prospective customers to present their
bank's financing services and to ascertain the customer's banking needs. At most smaller
and medium-size banks, branch managers and commercial loan officers are responsible
for marketing the bank's financial services.
Working Conditions
Securities sales workers usually work in offices where there is much activity. They
have access to "quote boards" or computer terminals that continually provide information
on the prices of securities. When sales activity increases, due perhaps to un-anticipated
changes in the economy, the pace may become very hectic.
Established securities sales workers usually work the same hours as others in the
business community. Beginners who are seeking customers may work much longer hours,
however. Most securities sales workers accommodate customers by meeting with them in
the evenings or on weekends.
Financial services sales workers generally work in a comfortable, less stressful office
environment. They generally work 40 hours a week. They may spend considerable time
outside the office meeting with present and prospective clients, attending civic functions,
and participating in trade association meetings.
Employment
Securities and financial services sales workers held about 203,000 jobs in 1990. In
addition, a substantial number of people in other occupations sold securities. These include
partners and branch office managers in securities firms as well as insurance agents and
brokers offering securities to their customers.
Securities sales workers are employed by brokerage and investment firms in all parts
of the country. Many of these firms are very small. Most sales workers, however, work for
a small number of large firms with main offices in big cities (especially in New York) and
approximately 14,000 branch offices in other areas.
Financial services sales workers are employed by banks, saving and loan
associations, and other credit institutions.
Training, Other Qualifications, and Advancement
Because securities sales workers must be well informed about economic conditions
and trends, a college education is increasingly important, especially in the larger securities
firms. In fact, the overwhelming majority of entrants to this occupation are college
graduates. Although employers seldom require specialized academic training, courses in
business administration, economics, and finance are helpful.
Many employers consider personal qualities and skills more important than academic
training. Employers seek applicants who have good communication skills, are well
groomed, and have a strong desire to succeed. Self-confidence and an ability to handle
frequent rejections also are important ingredients for success.
Because maturity and the ability to work independently also are important, many
employers prefer to hire those who have achieved success in other jobs. Some firms prefer
candidates with sales experience, particularly those who have worked on commission in
areas such as real estate or insurance. Understandably, most entrants to this occupation
transfer from other jobs. Some begin working as securities sales workers following
retirement from other fields.
Securities sales workers must meet State licensing requirements, which generally
include passing an examination and, in some cases, furnishing a personal bond. In
addition, sales workers must register as representatives of their firm according to
regulations of the securities exchanges where they do business or the National Association
of Securities Dealers, Inc. (NASD).
Before beginners can qualify as registered
representatives, they must pass the Securities and Exchange Commission's General
Securities Examination, or examinations prepared by the securities exchanges or the
NASD. Large national brokerage firms may require a second examination--the Uniform
Securities Agents State Law Examination--that allows sales workers to do business
nationwide. These tests measure the prospective representative's knowledge of the
securities business, customer protection, and recordkeeping procedures.
Most employers provide on-the-job training to help securities sales workers meet the
requirements for registration. In most firms, the training period takes at least several
months. Trainees in large firms may receive classroom instruction in securities analysis,
effective speaking, and the finer points of selling; take courses offered by business schools
and other institutions and associations; and undergo a period of on-the-job training lasting
up to 2 years. In small firms, sales workers generally receive training in outside institutions
and on the job. Many trainees take correspondence courses in preparation for the
securities examinations.
Securities sales workers periodically take training, through their firms or outside
institutions, to keep abreast of new financial products as they are introduced on the market.
Training in the use of computers is important, as the securities sales business is highly
automated.
The principal form of advancement for securities sales workers is an increase in the
number and size of the accounts they handle. Although beginners usually service the
accounts of individual investors, eventually they may handle very large institutional
accounts such as those of banks and pension funds. Some experienced sales workers
become branch office managers and supervise other sales workers while continuing to
provide services for their own customers. A few representatives advance to top
management positions or become partners in their firms.
Banks and other credit institutions prefer to hire college graduates for financial
services sales jobs. A business administration degree with a specialization in finance or
a liberal arts degree including courses in accounting, economics, and marketing serves as
excellent preparation for this job.
Financial services sales workers learn through on-the-job training under the
supervision of bank officers. Outstanding performance can lead to promotion to managerial
positions.
Job Outlook
The demand for securities sales representatives fluctuates as the economy expands
and contracts. Thus, in an economic downturn, the number of persons seeking jobs usually
exceeds the number of openings-sometimes by a great deal. Even during periods of rapid
economic expansion, however, competition for securities sales training positions--
particularly in larger firms--is keen because of potentially high earnings. Job opportunities
should be best for mature individuals with successful work experience. Opportunities for
inexperienced sales representatives should be best in smaller firms.
The number of securities sales represented is expected to grow much faster than the
average for all occupations through the year 2000. Most job openings however, are
expected to be created by workers who transfer to other jobs, retire, or stop working for
other reasons. Due to the highly competitive nature of securities sales work, many
beginners leave the field because they are unable to establish a sufficient clientele. Once
established, however, securities sales workers have a relatively strong attachment to their
occupation because of high earnings and the considerable investment in training.
Faster than average employment growth is expected among financial services sales
workers as a result of the continued expansion in banking services and the need to finance
an increasing level of commercial activity.
Employment of securities sales workers is expected to expand as economic growth,
rising personal incomes, and greater inherited wealth increase the funds available for
investment. Growth in the number and size of institutional investors will be particularly
strong as more people enroll in pension plans, set up individual retirement accounts,
establish trust funds, and contribute to the endowment funds of colleges and other nonprofit
institutions. In addition, more workers will be needed to sell securities issued by new and
expanding corporations and by State and local governments financing public improvements.
Job opportunities should be best for mature individuals with successful work experience.
The demand for securities sales workers fluctuates as the economy expands and
contracts. Thus, in an economic downturn the number of persons seeking jobs usually
exceeds the number of openings--sometimes by a great deal. Even during periods of rapid
economic expansion, however, competition for securities sales training positions is keen
because of potentially high earnings.
Earnings
According to the Securities Industry Association, earnings of full-time, experienced
securities sales workers who served individual investors averaged about $75,300 a year
in 1990. The relatively small number of sales workers who handled institutional accounts
averaged about $254,400.
Trainees usually are paid a salary until they meet licensing and registration
requirements. After registration, a few firms continue to pay a salary until the new
representative's commissions increase to a stated amount. The salaries paid during
training usually range from $1,100 to $1,500 a month.
After candidates are licensed and registered, their earnings depend on commissions
from the sale or purchase of stocks and bonds, life insurance, or other securities for
customers. Commission earnings are likely to be high when there is much buying and
selling and lower when there is a slump in market activity. Most firms provide sales workers
with a steady income by paying a "draw against commission"--that is, a minimum salary
based on the commissions which they can be expected to earn. Securities sales workers
who can provide their clients with the most complete financial services should enjoy the
greatest income stability.
Financial services sales workers are paid a salary; some receive bonuses if they
meet certain established goals. Average earnings of financial services sales workers are
considerably less than those of securities sales workers.
Related Occupations
Similar sales jobs requiring specialized knowledge include insurance agents and real
estate agents.
Sources of Additional Information
Further information concerning a career as a securities sales worker is available for
$1 from:
Securities Industry Association, 120 Broadway, New York, N.Y. 10271.
Career information also may be obtained from the personnel departments of
individual securities firms.
For information about job opportunities for financial services sales workers in various
States, contact State bankers' associations. Or write directly to a particular bank to inquire
about job openings. For the names and addresses of banks in a specific location as well
as the names of their principal officers, consult one of the following directories, which are
published twice each year:
The American Bank Directory (Norcross, GA., McFadden Business
Publications).
Polk's World Bank Directory (Nashville, R.L. Polk & Co.).
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