Most Potentially Rewarding Careers Today- Selling Financial Instruments

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Selling Financial Instruments are Among the Most
Potentially Rewarding Careers Today
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• Financial instruments are legal agreements that
  require one party to pay money or something else
  of value or to promise to pay under stipulated
  conditions to a counter party in exchange for the
  payment of interest, for the acquisition of
  rights, for premiums, or for indemnification
  against risk.
• In exchange for the payment of the money, the
  counter party hopes to profit by receiving
  interest, capital gains, premiums, or
  indemnification for a loss event.

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• Selling financial instruments are among the most
  potentially rewarding careers today. The field is
  extremely challenging, and many aspiring
  financial salespeople never find their niches and
  wash out.
• But successful financial product salespeople have
  practically unlimited income potential, lucrative
  residual income and tremendous personal freedom.
• Many of them take great satisfaction in helping
  people achieve their financial goals.

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There are, however, some steps you have to take
before Selling financial instruments.

• Obtain an insurance license. The insurance
  industry is regulated at the state
• Get appointed with one or more insurance
  companies doing business in your state
• Take the Series 6 Exam.
• Obtain the Series 7 license.

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• Selling financial instruments can be an actual
  document, such as a stock certificate or a loan
  contract, but, increasingly, financial
  instruments that have been standardized are
  stored in an electronic book-entry system as a
  record, and the parties to the contract are also
  recorded.
• For instance, United States Treasuries are stored
  electronically in a book-entry system maintained
  by the Federal Reserve.
• Some common financial instruments include checks,
  which transfer money from the payer, the writer
  of the check, to the payee, the receiver of the
  check.

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• Stocks are issued by companies to raise money
  from investors.
• The investors pay for the stock, thereby giving
  money to the company, in exchange for an
  ownership interest in the company.
• Bonds are financial instruments that allow
  investors to lend money to the bond issuer for a
  stipulated amount of interest over a specified
  period.

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• For instance, if a speculator thought that the
  price of XYZ stock was going to go up, then he
  could buy a call option for the stock, which
  would be profitable if the stock does go up.
• If the option expires worthless, then the loss to
  the speculator is less than the loss that would
  have been incurred from actually owning the
  stock.
• Hedgers attempt to mitigate financial risk by
  buying or selling the financial instruments whose
  value would vary inversely with the hedged risk.

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• For instance, if the owner of XYZ stock feared
  that the price might go down, but didn't want to
  sell before a specific time for tax purposes,
  then she could buy a put on the stock that would
  increase in value as the stock declined in value.
• If the stock goes up, then the put expires
  worthless, but the loss of the put premium would
  probably be less than the loss incurred if the
  stock declined.

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