TABLE II-5.-Broker-dealers registered with the SEC classified by size of adjusted net capital and ratio of aggregate indebtedness to net capital 1 Those firms which were in violation of the Commission's net capital rule generally have been requested to comply with the rule and in some instances revocation proceedings have been started. * Includes firms whose adjusted net capital showed a deficit. NOTE.-Adjusted net capital and aggregate indebtedness are computed as set forth in Commission Rule 15c3-1 under the Securities Exchange Act of 1934. The table does not include members of the New York Stock or American Stock Exchanges but does include all other broker-dealers registered with the Commission as of Dec. 31, 1961, who filed financial reports with the Commission prior to that date. Data are based on the latest such reports filed and generally are for the 1960 or 1961 fiscal yearend of each firm. These reports are filed throughout the year in the discretion of each firm. TABLE II-6.-Number of registered representatives of NASD member firms, NOTE.-Prior to 1961, the figures included duplications where a registered representative was registered with more than 1 firm. TABLE II-7.-New NASD registered representatives and NASD qualification examination program, 1956–62 1 There are slight differences in the actual number of applicants and the number shown here because some persons applied in one year and took the examination or were registered in the following year. Also, persons who took the examination more than once were counted as new applicants each time that they took the examination. ? The examination was radically changed effective Jan. 1, 1962, and a more difficult test substituted. During December 1961, the last month in which the old examination could be taken, 6,075 applicants took the test and 6 percent of them (368), failed. 96746 0-63-13 TABLE II-8.-Extent and type of prior experience of salesmen hired in 1961 by broker-dealer firms with 15 or more registered representatives 1 Includes data for a few small firms which were not considered sufficiently representative of these firms to be shown separately. A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it received from securities transactions, from the sale of mutual fund shares. Less than 0.05 percent. NOTE.-Firms have been classified as "large", "medium", or "small", according to the size of their gross income. Data are estimates based on a sample of broker-dealers, primarily NASD members, employing 30 or more registered representatives or employing 15 or more registered representatives and which had branch offices. See ch. II, app. A, for the method of selection of the sample and the method of estimating the percentages for all firms. TABLE II-9.-Percent of broker-dealer firms' sales forces hired in 1961 1 Ratio of number of salesmen hired during 1961 to total number employed as of Apr. 1, 1962. 2 A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it received from securities transactions, from the sale of mutual fund shares. NOTE.-Firms have been classified as "large," "medium," or "small," according to the size of their gross income. Data are estimates based on a sample of broker-dealers, primarily NASD members, employing 3 or more registered representatives. See ch. II, app. A, for the method of selection of the sample and the method of estimating the percentages for all firms. TABLE II-10.-Percent of broker-dealer firms' sales forces leaving in 1961 [Percent of total number of firms in each group] 1 Ratio of number of salesmen leaving during 1961 to total number employed as of Apr. 1, 1962. 2 A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it received from securities transactions, from the sale of mutual fund shares. NOTE.-Firms have been classified as "large," "medium," or "small," according to the size of their gross income. Data are estimates based on a sample of broker-dealers, primarily NASD members, employing 3 or more registered representatives. See ch. II, app. A, for the method of selection of the sample and the method of estimating the percentages for all firms. TABLE II-11.—The nature and extent of on-the-job training by broker-dealer firms 1 A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it received from securities transactions, from the sale of mutual fund shares. "Back office" includes the following functions: Wire and order, billing and clearing, cashier's and margin. Primarily observation of the firm's selling operations and sales personnel, and study for correspondence courses and courses given at local schools. NOTE.-Firms have been classified as "large," "medium," or "small," according to the size of their gross income. Data are estimates based on a sample of broker-dealers, primarily NASD members, employing 3 or more registered representatives. See ch. II, app. A, for the method of selection of the sample and the method of estimating the percentages for all firms. TABLE II-12.—The nature and extent of classroom training by broker-dealer firms 1 Includes data for a few "small" firms which were not considered sufficiently representative of these 2 A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it NOTE.-Firms have been classified as "large." "medium," or "small," according to the size of their gross TABLE II-13.-Extent of broker-dealer firms' employment of full-time and parttime salesmen 1 A "mutual fund firm" is defined as a firm which derived more than half of the gross income, which it received from securities transactions, from the sale of mutual fund shares. NOTE. Firms have been classified as "large," "medium," or "small," according to the size of their gross income. Data are estimates based on a sample of broker-dealers, primarily NASD members, employing 3 or more registered representatives. See ch. II, app. A, for the method of selection of the sample and the method of estimating the percentages for all firms. TABLE II-14.-Education and experience of principals of investment adviser firms-Investment adviser registrations in May, June, and July, 1961 Excluding 7 registrations which were subsequently withdrawn. 2 Includes certain related experience such as that of a bank official or economics or finance professor. |