when I was a teen in 1999 I saw Boiler Room in theaters and thought being a “stockbroker” was the coolest thing ever…
So my question is what has that dark dirty corner of “finance” become? I still see job listing for firms sponsoring naive college grads for the series 7 with “6 figure earning potential” through cold calling. Has anyone done this? Obviously there is money to be made and I’m sure some people actually have -multi million dollar books- but hasn’t the role of a financial planner taken over the idea of just selling stocks?
How does it work now… Is it really still possible to sell stocks from a cold call?
Is it really still possible to sell stocks from a cold call?
Yes, it is possible, but don’t expect to make 6 figures. that’s just to sucker people in, and very few ever make it to that level, and the vast majority drop out. I do know some shops that still do it. the people work off 100% commissions, and the firm doesn’t lose much from it.
Yes, crappy investment companies still exist which build portfolios for muppets that maximize the fees to the firm and advisor.
Most firms will take any dilbert student who can pass a Series 7 and demand they call their friends and families to begin building their client base by roping them into complex variable universal life insurance polices. These are not investment products and command high fees with very little benefit. This makes the barrier to exit high for the client regardless if said dilbert advisor is still around.
Yes, people can make millions doing this. However I’d bet the aggregate net worth of AF that 99.999% of them do not make it.
so how does it work… If i called someone right now and they boughy 50k worth of some stock or apparently life insurance, how much does the broker make? commission ??