Registered representatives buy and sell securities for clients and offer investment advice. They must pass exams and maintain registration with a regulatory agency. They charge commissions and work with individuals and institutions. People skills and market knowledge are important.
A registered representative buys and sells securities on orders from clients and provides advice on potential investments. Registered Representatives are also known as Account Executives, Brokers or Brokers. They usually work for brokerage firms and when they apply for initial license they must be sponsored by the parent companies.
To become a registered representative, you must pass a series of exams. These exams test knowledge of professional trade ethics, laws related to acting as an agent for clients, and related issues. After passing the exams, people can register with a regulatory agency to work as registered representatives. To maintain registration, continuing education classes are required. Persons who do not meet continuing education requirements may not remain registered representatives.
The registered representative acts as an agent on behalf of the customers. People approach registered representatives to ask them to buy and sell securities for them. Customers place orders and the representative works to fulfill the order in a timely manner and at the best price for the customer. This includes networking with other companies and acting quickly to fulfill time-sensitive orders.
Another aspect of the job involves offering advice. Registered Representatives are not financial advisers but will provide information when asked about specific investments. They can tell clients whether to buy, sell or hold investments, basing their opinions on current market movements and experiences. Customers trust their agents to provide accurate and well-informed information.
In exchange for these services, a registered representative typically charges a commission. The commission is usually based on the selling price. Other arrangements, such as retaining the retainer, can also be worked out, depending on where the registered representative works and the customer’s needs. All remuneration information must be agreed before the registered representative begins to execute business on behalf of the client.
People in these careers may work with individual investors as well as institutions. They assist in running businesses of all sizes, from bulk sales and purchases to smaller transactions. People skills are critical, as is knowledge of the market and the wide range of investment options available to people. A registered representative can earn varying amounts depending on compensation arrangements and the current market position. Because reps want to win and lose along with their customers, they have a powerful incentive to provide the best possible service.
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