For a typical investor, buying and selling stock is a simple process. Often, it is as easy as calling a broker on the phone or entering the trade into a computer. Behind the scenes, however, buying and selling stock is more complicated, involving trade execution and a fair amount of paperwork. While brokers do some of this work themselves, much of it is delegated to brokerage clerks.
Brokerage clerks perform a number of different tasks with a wide range of responsibilities. Most involve computing and recording data pertaining to securities transactions. Brokerage clerks may also contact customers, take orders, and inform clients of changes to their accounts. Brokerage clerks work in the operations departments of securities firms, on trading floors, and in branch offices. Technology has had a major impact on these positions over the last several years. A significant and growing number of brokerage clerks use custom-designed software programs to process transactions more quickly. Only a few customized accounts are still handled manually.
A broker's assistant, also called a sales assistant, is the most common type of brokerage clerk. These clerks typically assist a small number of brokers, for whom they take client calls, write up order tickets, process the paperwork for opening and closing accounts, record a client's purchases and sales, and inform clients of changes to their accounts. All broker's assistants must be knowledgeable about investment products so that they can communicate clearly with clients. Those who are licensed by the Financial Industry Regulatory Authority (FINRA) can make recommendations to clients at the instruction of the broker.
Brokerage clerks in the operations areas of securities firms perform many duties to help the sale and purchase of stocks, bonds, commodities, and other kinds of investments. They also produce the necessary records of all transactions that occur in their area of the business. Purchase-and-sale clerks match orders to buy with orders to sell. They balance and verify trades of stock by comparing the records of the selling firm with those of the buying firm. Dividend clerks ensure timely payments of stock or cash dividends to clients of a particular brokerage firm. Transfer clerks execute customer requests for changes to security registration and examine stock certificates to make sure that they adhere to banking regulations. Receive-and-deliver clerks handle the receipt and delivery of securities among firms and institutions. Margin clerks record and monitor activity in customers' accounts to ensure that clients make payments and stay within legal boundaries concerning their purchases of stock.
Work environment. Brokerage clerks work in offices and on trading floors, areas that are clean and well lit but which may be noisy at times. The workload is generally manageable but can become very heavy when the market fluctuates rapidly. Brokerage clerks generally work a standard 40-hour week, but they may work overtime during particularly busy periods.
| 1. | Correspond with customers and confer with coworkers in order to answer inquiries, discuss market fluctuations, and resolve account problems. |
| 2. | Record and document security transactions, such as purchases, sales, conversions, redemptions, and payments, using computers, accounting ledgers, and certificate records. |
| 3. | Schedule and coordinate transfer and delivery of security certificates between companies, departments, and customers. |
| 4. | Prepare forms, such as receipts, withdrawal orders, transmittal papers, and transfer confirmations, based on transaction requests from stockholders. |
| 5. | File, type, and operate standard office machines. |
| 6. | Monitor daily stock prices, and compute fluctuations in order to determine the need for additional collateral to secure loans. |
| 7. | Compute total holdings, dividends, interest, transfer taxes, brokerage fees, and commissions, and allocate appropriate payments to customers. |
| 8. | Prepare reports summarizing daily transactions and earnings for individual customer accounts. |
| 9. | Verify ownership and transaction information and dividend distribution instructions to ensure conformance with governmental regulations, using stock records and reports. |
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