What is a junior stock broker?

Written by charles morin
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What is a junior stock broker?
Junior stockbrokers help licensed stockbrokers until they become licensed themselves. (Comstock/Comstock/Getty Images)

A junior stockbroker is more or less a trainee to become a fully licensed stockbroker. Junior stockbrokers learn the basics of how the stock market works while assisting the licensed stockbrokers with the paperwork associated with clearing stock trades. To graduate from junior stockbroker status, they must complete the necessary training and examinations required by the Financial Industry Regulatory Authority (FINRA).

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Junior Stockbrokers in the Brokerage House

Junior stockbrokers are assistants to licensed stockbrokers, helping the brokers manage phone calls, filing the required paper work with the proper offices and desks, and generally helping the stockbroker assist their clients. Stockbrokers are licensed by FINRA after passing a series of examinations that validate their understanding of the operations, laws and ethics of stock exchanges. In their most basic form, a stock brokerage is the company that facilitates a transaction between one person who is selling a particular stock and another person who wants to buy that stock.

The Goal: Licensed Stockbroker

The aspiration of most junior stockbrokers is to be a stockbroker and later a vice president. Junior stockbrokers do not require a college degree but it will certainly help their training to have a basic understanding of the stock market. Advanced degrees, including an MBA, can enhance the junior stockbroker's chance of a larger salary after licensure. A junior stockbroker's training period usually consists of four months of intensive on-the-job training to learn the basics of stock trading, the products the trading firm offers, effective communication, and sales techniques.

Graduating from Junior Stockbroker Status

Licensing consists of taking and passing FINRA's General Securities Registered Representative Exam (series 7). Additionally, most states require the Uniform Securities Agents Representative State Law Exam (series 63 or 66). As a matter of course, nearly all stockbrokers take both exams to ensure full compliance across state jurisdictions.

Salary Expectations of a Stock Broker

Once a junior stockbroker is licensed as a stockbroker, they can expect to earn significantly more money. The Bureau of Labor Statistics states that the median average 2008 annual earnings for a stock broker was £44,642, with the middle 50 per cent earning between £26,312 ad £79,475. Stock brokerage is a sales-oriented business so salaries will rise and fall commensurate with the amount of hard work and economic conditions.

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