Significant Points
More than half of all jobs in the securities industry are held by securities sales agents and management and financial operations workers, who generally have at least a college degree; the rest are mainly office and administrative support jobs.
Employment is expected to grow as a result of increasing investment in securities and commodities, along with a growing need for investment advice.
Governments and stock exchanges are instituting accounting and corporate reforms to increase public confidence in the investment markets.
The high earnings of successful securities sales agents will cause keen competition for these positions -- particularly in larger firms.
Nature of the Industry
The securities industry is made up of a variety of firms and organizations that bring together buyers and sellers of securities, manage investments, and offer financial advice.
The industry is undergoing substantial change because of improvements in technology, deregulation of financial services, regulatory changes, the globalization of the marketplace, and demographics.
The Internet, along with high-speed computer systems, has dramatically altered the way in which securities and commodities are bought and sold, almost completely automating the transaction process.
At the same time, the number of financial services being offered is rising as firms look for new ways to attract the business of an increasingly wealthy and investment-savvy public.
A relatively small number of professionals in the securities industry work in the exchanges, where the actual trading of securities and commodities takes place.
Computers and their applications have made brokers in the exchanges much more productive and capable of handling ever-increasing volumes of trades.
Employment in the securities industry is directly affected by the activity of the stock market and the savings and investment goals of individuals.
Because these factors are determined largely by the strength of the economy, the industry prospers during good economic times, but is much more adversely affected by downturns than are many other industries.
Working Conditions
Most people in the securities industry work long hours, including evenings and weekends. Even when not working, professionals in the industry must keep abreast of events that may affect the markets in which they specialize.
Securities sales agents who deal mostly with individual investors and small businesses often work in branch offices of brokerage firms or for a small brokerage or financial-planning firm. New sales agents work long hours, mostly soliciting customers.
During the day they are on the phone continually with prospective customers, while at night they may attempt to generate new business by giving classes or seminars or by attending community functions.
New sales agents also spend many hours studying to pass a variety of tests that will qualify them to sell other investment products.
Although established agents work more regular hours, all agents meet with clients in the evenings and on weekends, as needed.
Sales agents who actually perform the buying and selling of securities and commodities may have one of the most hectic jobs of any profession. Often called traders, market makers, dealers, or floor brokers, they work on the floors of exchanges or at a computer that is linked to other traders.
They not only take orders from clients and try to get the best price for them, but also must constantly keep an eye on market activity and stay in touch with other traders and brokers to know what prices are being offered.
Increasingly, sales agents for many of the brokerage companies work in call centers, opening accounts for individuals, entering trades, and providing advice over the phone on different investment products.
Although many simply respond to inquiries and do not actively solicit customers, others may be required to contact potential clients.
Call centers also employ a large number of customer service representatives, who answer questions for current clients about their accounts and make any needed changes or transfers. All workers in call centers must maintain a professional and courteous attitude, work well under pressure, and be able to speak for long periods of time.
Many call centers operate 24 hours a day, 7 days a week, and employees may be required to work evenings and weekends.
Researchers, financial analysts, and investment managers also work long hours, researching and evaluating companies and their markets.
Personal financial advisors work in offices or out of their homes. Most work regular business hours, but many accommodate clients by visiting them at their homes in the evenings or on weekends.
Training and Advancement
The securities industry has one of the most highly educated and skilled workforces of any industry, and the requirements for entry are high.
The most successful workers at all levels have an aptitude for numbers and a keen interest in investing. In addition, most people in the industry are required to be licensed before they can sell securities or recommend specific investments.
To be licensed, brokers and assistants must pass certain examinations that test their knowledge of investments. Various licenses are available for different investment products.
The test most brokers receive is the "Series 7" license, which requires a passing score on the General Securities Registered Representative Examination administered by the NASD.
Since 1995, the NASD also has required all registered persons with licenses to undergo a continuing education program approximately every 3 years in order to retain their licenses.
A college education, although not essential, is increasingly important for securities, commodities, and financial services sales agents because it helps them to understand economic conditions and trends.
In fact, the overwhelming majority of entrants to this occupation are college graduates. Still, many employers consider personal qualities and skills, such as self-motivation and the ability to handle rejection, more important than academic training.
Many employers prefer persons who have been successful in other sales careers. Employers seek applicants with good communication skills, a professional appearance, and a strong desire to succeed.
Advancement opportunities in the securities industry vary by occupation. To advance into the managerial ranks or enter some of the more lucrative and prestigious jobs, a master's degree is increasingly becoming essential.
The principal basis of advancement for securities services sales agents is an increase in the number and size of the accounts they handle. Some eventually manage the assets of clients.
Although beginners usually service the accounts of individual investors, a select few eventually may handle very large institutional accounts.
Outlook
Employment growth will be driven primarily by increasing levels of investment in securities in the global marketplace. In addition to the many new job openings stemming from this growth, a large number of openings will arise as people retire or leave the industry for other reasons.
A great factor contributing to projected employment growth is the "globalization" of securities and commodities markets -- the extension of traditional exchange and trading boundaries into new markets all over the world.
This extension, in turn, has provided an expanding array of investment opportunities and access to markets in which new financial products are now available to domestic investors.
These new products and markets encourage trading and prompt firms to hire more workers.
Also, although online trading will grow and reduce the need for direct contact with an actual broker, the number of securities sales agents is still expected to increase, as many people will remain willing to pay for the advice that a full-service representative can offer.
Competition for securities sales agent jobs, though, is expected to be keen, because the job attracts a large number of qualified applicants.
