CHART 1-a INDEXES OF FULL-TIME EQUIVALENT EMPLOYEES IN SECURITIES INDUSTRY SOURCE: U.S. Dept. of Commerce, Office of Business Economics ★ Includes security and commodity brokers, dealers, and exchanges. 57 58 290 260 220 180 140 140 100 100 60 CHART 1-b AVERAGE ANNUAL EARNINGS PER FULL-TIME EMPLOYEE IN SECURITIES INDUSTRY AND IN ALL INDUSTRIES 1929 - 1961 29 1930 31 32 33 34 35 36 37 38 39 1940 41 42 43 44 SOURCE: U.S. Dept. of Commerce, Office of Business Economics Includes security and commodity brokers, dealers and exchanges. 45 46 47 48 49 1950 51 Average annual earnings per full-time employee of the securities industry has increased almost steadily since 1942. Chart I-b, which compares these earnings with the counterpart for all industries since 1929, shows that the average earnings in the securities industry have been consistently higher. However, since 1945, the rate of increase in earnings in the securities industry has been somewhat less than the rate of increase in all industries. 7. SUMMARY Out of this overall picture of the securities industry emerge several preliminary conclusions. On the one hand, the industry contains a small group of large broker-dealer organizations, dominant in their amount of public business, and possessing large numbers of salesmen, supervisors, and branch offices. This group, in turn, consists principally of large firms doing a general business, which are members of the NASD and usually of one or more exchanges, and large mutual fund sales organizations, not members of any exchanges and in some cases not even members of the NASD. On the other hand, there are many small firms, with a much smaller but still significant share of public business, including a large number of mutual fund specialists and also a large group of firms doing a high proportion of their business in over-the-counter securities. Most of the smaller firms are NASD members, and the incidence of exchange membership among them is considerably lower than among the large general firms. For both groups of firms, many features are the same. But naturally the very differences of size and type of business determine, at least in part, many of the internal and regulatory problems of each group. An examination of the qualifications of those in the industry and the controls for entry, for example, focuses more on the salesmen and supervisors in the case of the larger firms, and more on the firms themselves and their principals in the case of the smaller firms. These are the topics considered in chapter II. TABLES TABLE I-1.—Market value of shares available for trading on stock exchange in the United States, selected yearends, 1940-62 TABLE I-2.-Net number of stocks available for trading on stock exchanges in the United States, selected fiscal yearends, 1940–62 TABLE 1-3.-Number of members, member firms, allied members, and nonmember correspondents of the New York Stock Exchange, selected yearends, 1940–62 1 A member firm is a broker-dealer firm at least one of whose general partners is a member of the exchange, or if a corporation, at least one of whose directors and voting stockholders is a member of the exchange. An allied member is a general partner in a member firm or a holder of voting stock in a member corpora. tion who is not a member of the exchange. Source: 1955-62, New York Stock Exchange, "Fact Book;" 1910-50, New York Stock Exchange, "Year Book." |