HOME

TheInfoList



OR:

A floor broker is an independent member of an
exchange Exchange may refer to: Physics *Gas exchange is the movement of oxygen and carbon dioxide molecules from a region of higher concentration to a region of lower concentration. Places United States * Exchange, Indiana, an unincorporated community * ...
who can act as a broker for other members who become overloaded with orders, as an
agent Agent may refer to: Espionage, investigation, and law *, spies or intelligence officers * Law of agency, laws involving a person authorized to act on behalf of another ** Agent of record, a person with a contractual agreement with an insuranc ...
on the floor of the exchange. The floor broker receives an order via
Teletype A teleprinter (teletypewriter, teletype or TTY) is an electromechanical device that can be used to send and receive typed messages through various communications channels, in both point-to-point (telecommunications), point-to-point and point- ...
machine from his firm's trading department and then proceeds to the appropriate trading post on the exchange floor. There he joins other brokers and the specialist in the
security Security is protection from, or resilience against, potential harm (or other unwanted coercive change) caused by others, by restraining the freedom of others to act. Beneficiaries (technically referents) of security may be of persons and social ...
being bought or sold and executes the trade at the best competitive price available. On completion of the transaction the customer is notified through his
registered representative A registered representative, also called a general securities representative, a stockbroker, or an account executive, is an individual who is licensed to sell securities and has the legal power of an agent in the United States. Registered repre ...
back at the firm and the trade is printed on the consolidated
ticker tape Ticker tape was the earliest electrical dedicated financial communications medium, transmitting stock price information over telegraph lines, in use from around 1870 through 1970. It consisted of a paper strip that ran through a machine called ...
which is displayed electronically around the country. A floor broker should not be confused with a floor trader who trades as a principal for his or her own account, rather than as a broker. Commission brokers are employees of a member firm.


References

Financial markets Brokerage firms {{econ-stub