Member

DEFINITION of 'Member'

1. In the most general context, a brokerage firm (or broker) holding membership on an organized stock or commodities exchange. Membership is generally required in order to fill trades for clients on the exchange.

2. For the New York Stock Exchange, one of more than 1,300 individuals or firms owning a seat on the exchange.

3. For the National Association of Securities Dealers (NASD), any broker-dealer admitted to membership in the association.

BREAKING DOWN 'Member'

Brokerages must have a "member seat" on the NYSE to trade stocks for their clients. The larger firms have several seats on the exchange. Seats cost more than $1 million each!

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RELATED FAQS
  1. What does membership in the New York Stock Exchange entail, and why is it known as ...

    Owning a seat on the New York Stock Exchange (NYSE) enables a person to trade on the floor of the exchange, either as an ... Read Answer >>
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    Brokerage and other financial organizations usually purchase seats or memberships at the New York Stock Exchange (NYSE) for ... Read Answer >>
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    In the United States, all options contracts go through one of several options exchanges. An investor must have an account ... Read Answer >>
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    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same ... Read Answer >>
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    A stock can trade on any exchange on which it is listed. And to be listed it must meet all of the exchange's listing requirements ... Read Answer >>
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