A Stock broker’s job description varies depending on the type and the firm he is with, but what does a Stock broker do? The main description on the job involves mostly by securities, options, annuities and investments but some are in sales or giving advise. The good part of being a successfulStock broker is that you can decide on who to work with. If you have a reliable portfolio and vast business connections you now have a reputation of a closing all the deals. The normal day for you is to be in a stock market and being there even a couple of hours before it starts to open for trading.
Before the trading starts you need to do marketing, basically calling your long time clients or even prospective ones. During this time the broker will find additional clients to invest their assets. The good about an experience broker is that you have more recommendations. And in the business world, referrals means a broker’s reliability. After the phone calls and recommendations and the stock trading starts, now you can analyze the stocks trend.
Let us check the difference and the possible work you may need to do once you become a Stockbroker. Let’s find out, What Does a Stock broker Do?
What Does a Stock broker do in the Trading Room?
In a trading room, it may look as simple buy or sell but scenario but the fact is , frantic traders and brokers goes into a lot of business decisions. In making this split decision you need to be fully equipped of knowledge through your experience, seminars and research. You simply wait for your client’s decision to buy or sell which solely depends on how you communicate and convince them to do so. Now as soon as the lucky trader has the stocks they will be paid through commissions. Now, the broker’s duty does not end here. For tax purposes, all portfolio performance is accounted for and ensure that nothing is missed in terms of bookkeeping of the records.
These records should be available once required by the Securities and Exchange Commission or SEC. Do not forget that as a stock broker, you are dealing with huge amount of money and you need to be thorough on your recording to avoid any dispute and conflict with the government body.
Along with the paperwork is your responsibility to settle taxes along with it. These may seem a busy industry to work to but bear in mind that in exchange for this hard work great opportunities await you. If you are successful in what you do, your decision to join the stock brokerage industry fits you. The bottom line is, grab whatever opportunity you have to prove your worth in the business industry.
Buying and Selling of Stocks
First is the buying and selling of stocks. Provided you have an excellent sales speech, and can handle any objections from the prospective buyer, this is the broker type that you may consider. Mainly you need to offer the product in the form of financial securities for example are bonds, stocks or mutual fund. The possible income or more commonly called dividends is when your client buys these securities at a low price and sell it a higher price or dividends coming from annual dividends.
How you will introduce this to your buyer and explain will prove your sales expertise. Closing the deal means commission for you, and it is very important especially for a newly hired broker. Every deal you close mean an additional account added under your name. This is the first phase of a Stock broker’s job description and this occupation, for the successful ones normally earns one of the highest annual income in the world.
Give Financial Advice to Clients – Investment Advisor
The second type is the Investment Advisor. The work includes meetings and client consultation. Initially, you make an appointment with your prospective client, discuss the securities you want to invest in. This requires time, effort and patience. As a start, you might need to call a possible clientele, get their trust and persuade them to award you deal. In this line of work, your ability to work under pressure will give you an advantage.
Basically you are giving your client suggestions and analyzing the possibility of getting the highest possible net income. This is stressful and may require you to work even during weekends and holidays. Remember, you are dealing with your client’s hard earned money and usually in large amount. You can expect a lot of questions from your client and you have to be versatile and patient, as they are trusting you with their money.
Once you have the account you need to have a clear explanation of what can the client get out of the investment, be transparent and honest. A simple mistake may lead to a loss under your advise. That would be an impact to your professional life. Your flexibility and courage to take a split second decision will be tested during the times that you may have to reduce any inherent risk from the customer’s investments.
One of the possible situation is when your client needs your advise on what to do with a stock that seem to decline its value in the financial market. Your client already has an inherent risk. As a Stock broker, what will be the best decision? Is it to let go of the stocks or keep it and wait? This scenario is a stressful one and will require split second decision analysis.
Assessing Risks with Buying and Selling Stocks
Do not forget that stocks may vary in price per second and surely your mathematical prowess to analyze financial data is at your advantage, investment indeed is a very risky decision. That is why before any decision is made, analysis of all angles should be made, and once made it may involve being at a loss. As a Stock broker engaged in investment advise, you need to analyze the situation and provide a suggestion for your client. Once the advise is a successful one, this mean you are an effective advisor.
Your performance will earn your firm a possibly long time clientele. In your end this will be added to your Stock broker profile. A good advise like this will earn you points plus commission on top of your monthly salary. If you are lucky enough, you may get a career advancement through partnership opportunity or top management positions.
Looking for Trends in the Stock Market
Usually a typical broker keeps an eye on the stocks trend and this is the basis whether to buy or sell the securities to generate income. The typical lunch time of the broker is still business. The rule is the more clients you get the more income and commission you have, so why waste time. During luncheons the broker may meet the client face to face and wrap up all the day’s events. Paper works are also done during this time. After the trading hours brokers stills do phone calls for networking or wrap up everything with a client.
Apart from these, stock brokers need to keep an eye on the stock trends since varies per market and changes abruptly. Say, the oil market or banking trends may have a lower charge per stock than in just seconds after if doubles the price. Through these researches your knowledge is improved and you will get an idea on the securities you are dealing with, how it goes and what is the best way to make a profit out of it. This is helpful in case you need to make a last minute decision in the future. Even during the holidays you may be required by your firm to have seminars or to meet up with clients. Especially if you are provided with a quota to reach, you need to work all the time. In this case you need to reach your sales target, impress your boss and get the possibility of being promoted.