When an investor wishes to buy or sell securities, sales representatives may relay the order through their firms' offices to sales floor of a securities exchange, such as the New York Stock Exchange. There, securities sales representatives known as brokers' floor representatives buy and sell securities. Securities sales representatives also provide many related services for their customers. Not all customers have the same investment goals. Securities sales representatives 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.
Most securities sales representatives serve individual investors, but others specialize in institutional investors. In institutional investing, most sales representatives concentrate on a specific financial product such as stocks, bonds, options or commodity futures. Some handle the sale of new issues, such as corporate securities issued to finance plant expansion.
The most important part of a sales representative's job is finding clients and building a customer base. Thus, beginning securities sales representatives 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 representatives find it useful to get additional exposure by teaching adult education investment courses or by giving lectures in libraries or social clubs. Brokerage firms may give sales representatives lists of people with whom the firm has done business with in the past. Sometimes sales representatives may inherit the clients of representatives who have retired.
Financial services sales representatives sell banking and related services. They contact potential customers to explain their services and to ascertain the customer's banking and other financial needs. They may discuss services such as deposit accounts, lines of credit, sales or inventory financing, certificates of deposit, cash management, or investment services. They may solicit businesses to participate in consumer credit card programs. At most small and medium-size banks, branch managers and commercial loan officers are responsible for marketing the bank's financial services. As banks offer more and increasingly complex financial services-for example, securities brokerage and financial planning-the job of the financial services sales representative is assuming greater importance.
Financial planners develop and implement financial plans for individuals and businesses using their knowledge of tax and investment strategies, securities, insurance, pension plans, and real estate. They interview clients to determine their assets, liabilities, cash flow, insurance coverage, tax status, and financial objectives. Then they analyze all this information and develop a financial plan tailored to the clients' needs.
Working Conditions
Securities sales representatives 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 unanticipated changes in the economy, the pace may become very hectic.
Established securities sales representatives 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 representatives accommodate customers by meeting with them in the evenings or on weekends.
Financial services sales representatives normally 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. Some financial services sales representatives work exclusively inside banks, providing service to "walk-in" customers.
Employment
Securities sales representatives are employed by brokerage and investment firms in all parts of the country. Many of these firms are very small. Most sales representatives, however, work for a small number of large firms with main offices in large cities, especially New York.
Financial services sales representatives are employed by banks, savings and loan associations, and other credit institutions.
Training, Other Qualifications, and Advancement
Many employers consider personal qualities and skills more important than academic training. Employers seek applicants who have sales ability and 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. Therefore, most entrants to this occupation transfer from other jobs. Some begin working as securities sales representatives following retirement from other fields.
Securities sales representatives must meet state licensing requirements, which generally include passing an examination and, in some cases, furnishing a personal bond. In addition, sales representatives must register as representatives of their firm ac-cording 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 General Securities Registered Representative Examination, administered by the NASD, and be an employee of a registered firm for at least four months. Most states require a second examination-the Uniform Securities Agents state Law Examination. These tests measure the prospective representative's knowledge of the securities business, customer protection requirements, and recordkeeping procedures. Many take correspondence courses in preparation for the securities examinations.
Most employers provide on-the-job training to help securities sales representatives meet the requirements for registration. In most firms, the training period generally takes about four 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 associations; and undergo a period of on-the-job training lasting up to two years. Many firms like to rotate their trainees among various departments in the firm to give them a broader perspective of the securities business. In small firms, sales representatives generally receive training in outside institutions and on the job.
Securities sales representatives must understand the basic characteristics of a wide variety of financial products offered by brokerage firms. Representatives periodically take training, through their firms or outside institutions, to keep abreast of new financial products as they are introduced on the market and to improve their sales techniques. Training in the use of computers is important, as the securities sales business is highly automated.
The principal form of advancement for securities sales representatives 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 advance to top management positions or become partners in the 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 degree including courses in accounting, economics, and marling serves as excellent preparation for this job.
Financial services sales representatives learn through the-job training under the supervision of bank officers. Outstanding performance can lead to promotion to managerial positions.
Job Outlook
Employment of financial services sales representatives is expected to grow somewhat slower than securities sales representatives as more and more people expected to do their banking from home via their personal computer.
More individual investors are expected to purchase common stocks, mutual funds, and other financial products after seeking advice from securities sales representatives regarding increasing array of investment alternatives. Investors increasingly rely on the growing number of financial planners to assist them in selecting the proper option among a wide variety of financial alternatives. In addition, demand should increase as banks and credit institutions expand the range of financial services they offer and issue more loans for personal and commercial use.
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 and financial services sales representatives have a very strong attachment to their occupation because of high earnings and the considerable investment in training.
The demand for securities sales representatives fluctuate 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 large firms-is keen because of potentially high earnings.
