Investment Brokerage Job Key Terms

Use investment brokerage job key terms to gain employment within the industry

By Kelley Keith

As with any job, working in the investment brokerage industry has its own lexicon. If you can define and understand the investment brokerage job key terms, it'll increase the chances of performing better or attaining a position within the business sector. Nevertheless, this alone won't guarantee success or employment; it'll give you a knowledge base on which you can expand and become comfortable with the profession.

Before you begin to research, review the investment brokerage jobs key terms below:

401k planning

The 401k is a popular retirement vehicle for many workers, and planning for retirement is a part of an investment brokerage firm that's important to its profitability. The access to 401k planning should offer a reliable income stream for an investment brokerage.
Try: Review the planning tutorial available at 401k Planning. For information on legislation to allow 401k planning for brokerages, see the report from U.S. News.

Margin interest charges

Margin interest charges is the income an investment broker earns from lending money to clients to invest.
Try: Examine the margin interest charges primer at Motley Fool for more information.

Assets under management

The term assets under management refers to the money a firm or broker has in their accounts at one time. The larger the assets under management the more responsibility a broker or firm has.
Try: Evaluate the definition of assets under management from Investor Words.

Series 7 exam

The series 7 exam is the certification test anyone who wants to sell securities must take. Financial Industry Regulatory Authority is the organization that administers the series 7 exam.
Try: Study the series 7 exam prep information from Investopedia to gain a thorough understanding of the term. For a briefer explanation of the exam, review the definition at the Securities and Exchange Commission.

Financial Industry Regulatory Authority, Securities and Exchange Commission

The Financial Industry Regulatory Authority, or FINRA, is the agency that regulates the employees of investment brokerages along with the Securities and Exchange Commission, or SEC. An investment broker must register with FINRA and the SEC.
Try: Assess the registration information from the Financial Industry Regulatory Authority and the Securities and Exchange Commission.

Broker commissions

Broker commissions are the most common way a person earns money in the profession. A broker gets a fee on each trade he or she makes and/or a percentage of the profits he or she earns on an account. The type of broker commission will vary depending on the company and the expereince and skill of the broker.
Try: Evaluate the broker commission information at Charles Schwab & Co for an example of the compensation schedule at a brokerage firm.