How do I start an investing firm?

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Dec 17, 2004 8:07 pm

I am in college, and want to start an investing firm after I get some brokerage experience.


What kind of license do I need?


Can someone outline what it will take?


Thanks.

Dec 17, 2004 10:00 pm
lrinvestor:

I am in college, and want to start an investing firm after I get some brokerage experience.


What kind of license do I need?


Can someone outline what it will take?


Thanks.



ummmm....series 7 and 24 or 9/10, plus life insurance most likely...depending upon the type of firm.  would suggest you get some experience first.....at least 5 yrs. 

Dec 17, 2004 10:24 pm

not to mention the FinOp.

Dec 17, 2004 11:49 pm
joedabrkr:
lrinvestor:

I am in college, and want to start an investing firm after I get some brokerage experience.


What kind of license do I need?


Can someone outline what it will take?


Thanks.



ummmm....series 7 and 24 or 9/10, plus life insurance most likely...depending upon the type of firm.  would suggest you get some experience first.....at least 5 yrs. 




I am planning on getting plenty of experience.


What are these tests over, and how do I prepare for them? Why do I need life insurance?


These questions are probably beyond basic, but I'm just learning right now and want to do things the right way.


Dec 18, 2004 8:03 am

The simplest way i sto get hired by a brokerage firm and have them pay for your exams.  You may not know this but in order to register and take the exams one must be "sponsored" by a brokerage firm.  They usually require that you show some apptitude for the exams before they will accept your request to write (as the firm is one usually paying for the exam).


Not to be a smartass, but Check out the NASD website to get an idea of what the different exams are for.


Dec 18, 2004 2:06 pm

Life insurance is the foundation for every financial plan.  You must get this license.

Dec 19, 2004 12:25 am

I want to start an auto manufacturing plant. 



What's a car?



f**king dumbass.

Dec 19, 2004 1:06 am
Beejeebers:

I want to start an auto manufacturing plant. 

What's a car?

f**king dumbass.


ROFLMFAO!  I'm about to piss myself reading that one!

Dec 19, 2004 1:36 am
Beejeebers:

I want to start an auto manufacturing plant. 

What's a car?

f**king dumbass.



You must have self-esteem issues if you have to come on an internet message board and make yourself feel better by insulting someone else. Sad.


Anywho, I'm new to this - I've invested personally in the stock market for many years, and been extremely successful. I'm not looking into doing it for a living, and was wondering what kind of steps I needed to go through (not to mention finishing my education).


But, thanks for the help, and I hope your little smartass comment improved your self image a bit.

Dec 19, 2004 7:56 pm

Thanks Dr. Phil, I do have self-esteem issues.  I feel so
liberated that you know now too!  I apologize, I couldn't tell you
were new to this and I I didn't know you've been PERSONALLY investing
the stock market for years! WOWIE ZOWIE!  You must be very smart.



It's good that you're not looking into doing for it a living because
starting your own firm is usually done part-time on the weekends by
McDonalds employees.

Dec 19, 2004 8:17 pm

IRInvestor- When you ask a question like you did you should expect the kind of answers that you got. Wow, I've been a human being for a few years now and have been extremely successful so I thought I would just be a god. What license do I need to be one?????

Dec 19, 2004 8:32 pm

HOW DARE YOU!! YOU DUMB PIKER!!!


GO GET SOME EXPERIENCE FIRST!!!

Dec 20, 2004 12:13 am
Beejeebers:

Thanks Dr. Phil, I do have self-esteem issues.  I feel so liberated that you know now too!  I apologize, I couldn't tell you were new to this and I I didn't know you've been PERSONALLY investing the stock market for years! WOWIE ZOWIE!  You must be very smart.

It's good that you're not looking into doing for it a living because starting your own firm is usually done part-time on the weekends by McDonalds employees.



So if I'm planning on starting my own firm you recommend that I start by getting a 40 hr/week job at McDonald's as my first step?

Dec 20, 2004 2:11 pm

Beejee I was laughing so hard the guy in the office next to me came in to see if I was alright.  I think there's someone who is too dumb to know what they don't know.  For that reason I say he should go get some experience at Jones where he will fit in!   lol  

Dec 28, 2004 9:21 am

The very first thing you should do is get a preferred list of mutual funds.  To do this you will need to promise the mutual fund families "selected" that you will send them 98% of your business.  In exchange for this pledge, you will receive "inducements" from them each time you sell their investments.  The best part about this business plan is that whether your clients make money or not, you still collect a fee.  This is a very conservative way of doing business that is popular in certain parts of Missouri.  If you will follow this strategy, you will be up to $200 million in profits in no time.  Economists call this strategy "redistribution of wealth".  This redistribution will result in transfer of your clients' funds from them to you.


I would also suggest selling partnerships in your firm.  If you can design a complicated distribution formula, you can further redistribute wealth from your limited partners to you.


At this point, in an effort to gain National recognition of your brilliant business plan, you will need to spend money and hire a senile business consultant, like Peter Drucker, to advise you on a new state-of-the-art communications system.  Don't worry, you won't actually have to spend "your" money.  Since the new communications system will benefit those who you plan on redistributing their wealth, you can pass the fees along to them.


Finally, because all of this redistribution of wealth has made you stressed, you will need to spend millions on naming rights to a football stadium.  This is where it gets really sweet.  On Sundays, eight times each year, you go sit in a luxury box and get to look out on many of the same people who you have helped redistribute their wealth.  This is what Elton John and the Lion King refer to as the Circle of Life.  It almost makes me cry.

Nov 28, 2008 5:59 pm

Kid, the best way to start your own 'financial / investment' firm is to NOT be a stock broker in the first place. You want to start in clearance and custody, then move to asset-liability mgt, then get your CFP, meantime while in custody get them to sponsor you for your 7/63. Take a lot of securities law in the law school if they'll let you in, oh and you should spend maybe a year or so incompliance -- that way you'll learn what the sneaky brokers try to pull to ruin your business and repittion. You'll also want to spend some time in HR for the same reasons.

 
OK now you're ready to start. But First decide if you wanna be an RIA or a BD? You'll need real $$ for the later (and lots of it). Then go get E&O coverage, and find a B/D to trade for your clients -- of which to start you won't have any (well maybe Mom n Dad). At some point you'll have to decide if you wanna sell variable annuities too. And I forgot, hire a lawyer to write your Form ADV and get it filed. And one more thing, all your promotional material has to be approved by FINRA, and they take forever, so start early!
 
You may also wanna get an MBA from some tippy top school, get your CFA under your belt, spend some time in portfolio management, and maybe get some institutional exposure by designing a new class of synthetic CDO.
 
Now you should be about ready. Good luck
Nov 28, 2008 6:31 pm
MinimumVariance:

Kid, the best way to start your own 'financial / investment' firm is to NOT be a stock broker in the first place. You want to start in clearance and custody, then move to asset-liability mgt, then get your CFP, meantime while in custody get them to sponsor you for your 7/63. Take a lot of securities law in the law school if they'll let you in, oh and you should spend maybe a year or so incompliance -- that way you'll learn what the sneaky brokers try to pull to ruin your business and repittion. You'll also want to spend some time in HR for the same reasons.

 
OK now you're ready to start. But First decide if you wanna be an RIA or a BD? You'll need real $$ for the later (and lots of it). Then go get E&O coverage, and find a B/D to trade for your clients -- of which to start you won't have any (well maybe Mom n Dad). At some point you'll have to decide if you wanna sell variable annuities too. And I forgot, hire a lawyer to write your Form ADV and get it filed. And one more thing, all your promotional material has to be approved by FINRA, and they take forever, so start early!
 
 
ou may also wanna get an MBA from some tippy top school, get your CFA under your belt, spend some time in portfolio management, and maybe get some institutional exposure by designing a new class of synthetic CDO.
 
Now you should be about ready. Good luck
 
You just responded to a 4 year old thread.  He is probably an assistant manager at Mickie D's by now.