The Role of an Account Executive in Selling Stocks
An account executive who sells stocks is generally referred to as a stockbroker, a financial consultant or a financial adviser. Selling stocks to customers is more involved than simply entering a trade. An account executive must develop a client base, understand his clients and deliver investments to them that have the best chance of achieving their investment goals.
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Attracting Clients
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Before an account executive can sell stocks, he needs to find clients who will purchase stocks through him. Thus, the first role of any account executive is to develop a client base. Clients can be obtained through word-of-mouth referrals, professional networks or personal contacts.
Profiling Customers
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To determine which stocks might be appropriate to sell to customers, an account executive must develop profiles outlining the investment objectives and risk tolerances of clients. If a client wants to earn a conservative dividend stream in his stock purchases, the account executive will not be successful at selling stock if he recommends aggressive international stocks that pay no dividend.
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Researching Investments
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To present appropriate investments to his customers, an account executive must research various stocks and understand how they trade. Although stocks are part of an overall stock market, each one represents a distinct business, so an account executive must understand these individual businesses to determine which ones may meet the needs of his customers.
Persuading Customers
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The most critical role an account executive has in selling stock is to actually persuade customers to purchase stock. Especially for clients with little investment knowledge or experience, the account executive must present a lucid explanation of why a particular stock is a good fit for a specific customer. If the account executive has done his homework regarding the needs of the customer and the characteristics of the stock, the sale should be relatively easy. However, some clients may need more persuading, in which case the selling abilities of the account executive become paramount.
Executing Orders
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The final role an account executive has in selling stock is the actual execution of the order. Usually, financial services firms have proprietary trading platforms that executives can use to enter orders on behalf of clients, but in rare situations the executive may have to place a phone call to a trading desk to enter an order. After entering the order, the executive should wait for a confirmation that the trade has been executed, then report the trade information to the client.
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References
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