NO EXPERIENCE NECESSARY: Make $100,000 a Year as a Stockbroker by Bruce Eaton

NO EXPERIENCE NECESSARY: Make $100,000 a Year as a Stockbroker

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A generally realistic account of what it takes to be a successful broker from a former one. Eaton is decidedly less forthright, though, on the unsavory aspects of the financial-services industry itself. Securities sales ranks behind only the practice of medicine as a high-paying occupation. But the entry barriers are far less stringent, consisting mainly of securing brokerage-house sponsorship to take a 250-question qualifying exam. Once past this sketchy test of investment/market knowledge, Eaton points out, the going gets tougher. To attract commission-generating clients, for example, brokers must prospect almost constantly. Cold calls are the usual method, but dialing for dollars yields roughly four turndowns for every interim acceptance--an average that helps explain why over 40 percent of all fledgling account executives leave the business before the end of their second year. Recruiting customers is one thing, retaining them another. Mincing few words about the need for diligence, Eaton offers sound if general counsel on dealing with rejection and developing fail-safe investment programs adaptable to a variety of needs. Unfortunately, his like-it-is briefings do not extend to the dirtier tricks of the brokerage trade, e.g., undisclosed commission overwrites, hard-sell campaigns mandated by management, manipulative market making in over-the-counter issues, second-best executions for retail (as opposed to institutional) accounts, and churning. Aspiring brokers can gain some valuable insights from this career guide, but they'll have to learn for themselves about the industry's dark side.

Pub Date: Feb. 19th, 1986
Publisher: Simon & Schuster