Member Firm

AAA

DEFINITION of 'Member Firm'

A broker-dealer in which at least one of the principal officers is a member of either the New York Stock Exchange (NYSE), another major stock exchange, a self-regulatory organization or a clearing house corporation.

Also referred to as "clearing member".

INVESTOPEDIA EXPLAINS 'Member Firm'

One seat (membership) on the NYSE usually costs more than $1 million. Owning a seat allows on the NYSE allows a person to trad on the floor of the exchange, either as an agent for someone else for for his or her personal account.

RELATED TERMS
  1. SEC Form X-15AJ-2

    This form is the "annual consolidated supplement", a form that ...
  2. SEC Form X-15AJ-1

    A form that is filed with the SEC as an amendatory and/or supplementary ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  5. Member

    1. In the most general context, a brokerage firm (or broker) ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
Related Articles
  1. Investing

    What does membership in the New York Stock Exchange entail, and why is it known as "owning a seat"?

    Owning a seat on the New York Stock Exchange (NYSE) enables a person to trade on the floor of the exchange, either as an agent for someone else (floor broker) or for one's own personal account ...
  2. Options & Futures

    Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  3. Trading Strategies

    Risk Management Techniques For Shorting Call Options

    Shorting covered calls is a popular options trade strategy. Here are the methods to mitigate the risk/loss and enhance profits for selling covered calls
  4. Professionals

    How to Choose a Robo-advisor? Follow the Money

    Which of the many robo-advisors will still be around in a decade? Here's an informal look at who might thrive and who might simply survive.
  5. Investing Basics

    Why Do Penny Stocks Fail?

    Penny stocks are speculative and highly risky investments. Lack of government and stock exchange oversight and general information leaves penny stock investors open to sudden losses.
  6. Brokers

    Do You Know How To Beat Your Broker?

    Want more returns? Give less of it to your broker! Keep your costs down, starting with broker costs.
  7. Fundamental Analysis

    Making Sense Of The Dow Reaching Record Levels

    When gauging the Dow's shifts in order to assess the U.S. economy and make investment decisions, one must know what the Dow represents,and what it doesn't.
  8. Technical Indicators

    What is a common strategy traders implement when using the Haurlan Index?

    Understand the fundamental dynamics behind the Haurlan Index and read about trading strategies based on its three component lines.
  9. Brokers

    Key Differences Between M&A Advisors And Business Brokers

    For a buy, sale or partnership for one's business, one needs brokers and advisors to proceed ahead. Here are the key differences between business brokers and M&A advisors.
  10. Trading Strategies

    Not All Online Trading Brokers Are Created Equal

    The online trading broker market is becoming more and more competitive. Small differences between them can add up to big fee savings for you--or losses.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center