History

• In the eighteenth and nineteenth centuries, European royalty would depend upon wealthy bankers to finance the cost of economic development or bankroll costly wars. Over time this method of financing became archaic: Monarchs, bankers and businesses began going to the public, specifically the emerging middle class, for money. By offering investors part ownership in companies or ventures in the form of stocks and securities, they were able to raise the necessary funds.
  This practice led traders to form ventures for the purpose of linking the government and commerce with individual investors looking to earn a return on their capital.
  
  

Stock Exchanges

• Stocks, bonds and other financial instruments are purchased and sold in various stock exchanges around the world. Two of the largest marketplaces for buying and selling securities are the Euronext and the New York Stock Exchange (NYSE). The NYSE was opened back in 1790. Stock exchanges in the United States generally were not regulated until the manipulation and fraudulent activities in the market contributed to the stock market disaster of 1929.
  In response, the passage of the Federal Securities Act of 1934 gave birth to a federal agency responsible for the oversight and regulation of securities. This agency, the SEC, implemented rules and regulation that made uniform procedures for stock offerings, mandated public disclosures and banned stock manipulation.
  
  

Duties

• Stock brokerage firms are in the business of soliciting for customers and growing their client base. There are basically two kinds of stock brokerage houses, full-service and discount. A discount brokerage generally receives and places a customer's order according to the directions they receive from their clients. Full-service brokerages provide a range of services to their customers, including making trade recommendations, devising trade strategies, putting together portfolios and executing trades. Some may even offer banking services.
  
  

Brokers

• Most stock brokerage firms employ licensed brokers to market their services to clients. Generally, brokers must have at least a bachelor's degree in a business-related discipline, like finance business administration, or marketing. They should also possess the ability to read and decipher financial reports, understand prospectuses and analyze financial data.
  Excellent sales skills, strong interpersonal attributes and the capacity to perform effectively in pressure situations are all required. Many brokerages have in-house training programs to assess their broker candidates' talents and skill sets. Most training regimens last approximately six months.
  
  

Licensing

• Most states require stock brokerages to be licensed. Brokers working for brokerage houses must pass the General Securities Registered Representative Examination or Series 7 Exam. They must also register with the National Association of Securities Dealers. In order to work in some states, brokers must pass the Uniform Securities Agent State Law Examination.