Brokerage branches show a big surge; Independents, not wirehouses, fuel growth.(News)

Investment News, May, 2004

Byline: Bruce Kelly Despite the recent ferocious bear market, the brokerage industry has managed to increase its number of branches since the top of the market in 2000, with much of the expansion coming from firms other than the New York-based wirehouses. According to NASD statistics, its member firms have expanded their branch offices by almost 20% over the past four years, reaching 95,882 at the end of April.

The number of registered representatives has also grown over that same time period, to 661,529, an increase of 6.6%. Some of the growth in branches comes from the expansion of independent broker-dealers, with some of the top firms classifying large-producing brokers' offices as branches. According to NASD, its rules basically define...

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