by Sandra L. Martin

Created on: May 18, 2009

The definition of a Financial Advisor can range from someone who tells you about a sale at the supermarket to someone who controls your life's savings. Most people think of a Financial Advisor as a Stockbroker, since much of the work in both realms is investment-oriented. Of course, there are specialties that further define each job title, but in essence, they perform very similar functions. They do their best to make money for you, though the Financial Advisor is sometimes seen as the quiet, safe guy in the corner office. The Stockbroker is more the loose cannon with the crumpled tie and disheveled suit who takes higher risks.

The first step on the journey to becoming a Financial Advisor/Stockbroker is to be familiar with the terminology, including: stocks, bonds, mutual funds, REITs, the difference between selling short and long, futures, options, and on, and on And of course, the names of the institutions involved: FINRA, NASD, MSRB, SEC. These companies rule the roost, so to speak. Then there are the stock exchanges: AMEX, NASDAQ, NYSE, and on to the stock exchanges, quite literally, around the world.

The history is long and complicated, what with FINRA being the child of a regulatory-focused merger of NYSE and NASD. The SEC blessed the merger, that's a good thing. The SEC is one tough cookie. Remember that, and remember they're very easily angered!

If you want to be the calm, neat guy in the corner office, you need to take the Series 6, which allows you to buy only mutual funds and variable annuity contracts. The other guy, with his six-shooter strapped to his leg, has to pass the Series 7 and typically the Series 63, to be a full-blown stock-slinger. They can buy pretty much anything. Which can be good and bad, depending on the accuracy of his aim.

Opting for the Series 6 will limit you, but you can start working your way to the corner office immediately.

If you want to be the stock-slinger (Registered Representative is the politically correct name) you need to get a Series 7 license. How do you get a Series 7? You have to take the test. What's the requirement for taking the test? Being hired by a registered Brokerage House. How do you get hired by a Brokerage House? By having your Series 7. Yes, Catch-22.

Give up? They hire you on speculation. If you don't pass the test within a specific time period, you don't work for them any more. The alternative is to work for a registered insurance company, then you can be sponsored

• 1
• 2
• Next Page >>