A Career as a Stock Broker
What is a Stock Broker?
A stock broker is a financial professional that buys and sells stocks or closely- related securities for retail customers. Stock brokers often work for a firm called a broker-dealer that has a seat on an exchange such as the New York Stock Exchange. The term ‘stock broker’ is a bit outdated, with an unsophisticated connotation attached to it. It typically refers to a licensed professional who advises and facilitates trading in a client’s brokerage account and is paid a commission per transaction.
The term stock broker was more in use in the 1980s and 1990s when trading commissions were very high. It wasn’t uncommon for these commissions to be in the hundreds, or even thousands of dollars for a round trip (buy and sell) transaction back in the 1980s.1 As you can imagine, that introduces an inherent conflict of interest.
This “fast money” soon brought with it an unsavory brand of ‘professionals’ into the business. Their escapades are portrayed in movies like ‘Boiler Room’ and ‘The Wolf of Wall Street