Most States require a second examination the Uniform Securities Agents State Law Examination. These tests measure the prospective representative's knowledge of the securities business, customer protection requirements, and recordkeeping procedures. In most firms, the training period generally takes about 4 months. Many firms like to rotate their trainees among various departments in the firm to give them a broader perspective of the securities business. In small firms, sales representatives generally receive training in outside institutions and on the job.
Many trainees take correspondence courses in preparation for the securities examinations.
Securities sales representatives must understand the basic characteristics of a wide variety of financial products offered by brokerage firms. Representatives periodically take training, through their firms or outside institutions, to keep abreast of new financial products as they are introduced on the market and to improve their sales techniques. Training in the use of computers is important, as the securities sales business is highly automated. The principal form of advancement for securities sales representatives is an increase in the number and size of the accounts they handle. Although beginners usually service the accounts of individual investors, eventually they may handle very large institutional accounts such as those of banks and pension funds.