The Benefit of the “Used Stock Salesmen”

Although the introduction of the internet was thought to be the final blow to the sales industry the resilience of the modern salesperson has proven one thing, the salesperson is here to stay. The adaption of the sales industry has caused certain types of sales professionals to downsize and in certain examples cease to exist. Sales pros such as the door to door salesmen, the used car salesman, and infamously the Stockbroker have had their numbers diminished by tenfold. However, although society has rejoiced in the death of the first two the decline of the traditional stockbroker has had larger ramifications on the overall market. In the golden ages of the stockbroker time period, men with pinstripe suits and slicked-back hair guided investors through the vast jungles of the markets. These men and sometimes women charged high commissions for their service which made broker jobs highly sought after during this time period. These high commissions had a very effective impact on the finance industry and the markets in that they prevented people from making stupid trades. Studies done by broker-dealers have found that in the 2010s more and more investors were making useless trades and in most cases losing money. Prior to the internet brokers, investors would have to pay commissions of anywhere from 100-1000 dollars per trade whereas now 5 dollars per trade is seen as “too high.” These 100+ commissions made concepts like day and swing trading inefficient. It is ironic that although the stockbrokers of old were perceived as slimy, greedy, and in most cases just out to earn a paycheck actually served an extremely beneficial benefit to investors. It is pretty obvious to people that the door to door salesmen and the used car salesmen have to go, but maybe we need help from a legend of the sales industry to help us keep some money in our pocket.