Job Description of an Undergraduate Stockbroker
A stockbroker works under the direction of a senior financial products sales professional to recommend investment products to corporate clients. He analyzes a client's needs and evaluates the firm's operating information to gauge risk and reward preferences, or risk profiles. A stockbroker can discuss investment ideas with a client randomly during the year or at a given point in time.
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Nature of the Work
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A stockbroker usually works for an investment bank or insurance company. She works on the sell-side, a financial services industry term meaning that she recommends, or sells, stocks and convertible stocks to customers. A stockbroker helps an individual or corporate client reach investment goals by reviewing financial reports and assessing levels of cash as well as risk preferences. For example, a stockbroker can ask a client whether he is a risk taker or is risk averse.
Education and Training
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A stockbroker must attend periodic training sessions dealing with financial services products to comply with Securities and Exchange Commission (SEC) or Financial Industry Regulatory Authority (FINRA) rules and procedures. An average stockbroker has a bachelor's degree in finance or investment analysis, although a liberal arts major is not uncommon in the profession. A stockbroker who manages a team or deals with institutional clients usually holds a master's degree in finance or business management.
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Salary
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A stockbroker's compensation depends on economic trends and her performance. She usually receives wages as well as cash and stock bonuses. Data compiled by the Bureau of Labor Statistics of the U.S. Department of Labor indicate that stockbrokers earned median wages of $68,680 in 2008, excluding cash and stock bonuses, with the middle half of the occupation earning from $40,480 to $122,270. The same source shows that financial stock brokerage analysts earned average salaries of $73,150 in 2008, excluding cash and stock bonuses, with the lowest 10 percent earning less than $43,440 and the highest 10 percent earning more than $141,070.
Career Development
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A stockbroker can improve his career growth opportunities by performing adequately and complying with continuing professional education (CPE) criteria that securities markets regulators usually require. If he has a four-year degree, he can be promoted faster by enrolling in a university's master of business administration program. A proficient and qualified stockbroker advances to a senior role, such as senior stockbroker, financial products manager or investment manager, in a few years.
Working Conditions
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A stockbroker's schedule may be hectic at times, especially if she needs to meet with major clients domestically or internationally. A stockbroker also may need to work on weekends or late at night to discuss investment options with clients. However, experienced stockbrokers or those holding supervisory responsibilities have standard 8:30 a.m. to 5:30 p.m. shifts on weekdays.
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References
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