Seat

DEFINITION of 'Seat'

Membership to the NYSE. Owning a seat on the NYSE enables one to trade on the floor of the exchange, either as an agent for someone else (floor broker), or for one's own personal account (floor trader). In the industry, owning a seat on the exchange is a prestigious position, with only a select few able to claim the position.

BREAKING DOWN 'Seat'

The phrase "owning a seat on the exchange" originates in a time before 1871, until which the exchange operated in a "call-market" fashion, which means stocks were traded individually. With this type of trading, each member would sit in an assigned seat and participate in the buying and selling of desired stocks, as they were called for trading.

RELATED TERMS
  1. Member

    1. In the most general context, a brokerage firm (or broker) ...
  2. Member Firm

    A broker-dealer in which at least one of the principal officers ...
  3. Floor Broker (FB)

    An independent member of an exchange who is authorized to execute ...
  4. ABC Agreement

    An agreement made between a purchasing member with a seat on ...
  5. Trading Floor

    The floor where trading activities are conducted. Trading floors ...
  6. Local

    Traders on future exchanges who may fill public orders occasionally, ...
Related Articles
  1. Professionals

    Exchange Markets

    Worldwide, there are over 100 securities exchanges where buyers and sellers meet to exchange goods and services in an organized, orderly fashion. Before we proceed, beginners should refer ...
  2. Investing Basics

    Stocks Basics: How Stocks Trade

    Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading ...
  3. Professionals

    Crossing Stock

    A floor broker from time to time may get an order from both a buyer and a seller in the same security. The floor broker may be allowed to pair off or “cross” the orders and execute ...
  4. Savings

    Why You Might Want a Seat That’s Worse Than Economy

    Surprise: The new basic economy airline ticket, dubbed “last class” by critics, might actually be worth the price. Here’s why.
  5. Investing Basics

    Learn About the New York Stock Exchange

    The New York Stock Exchange (NYSE) is nicknamed the “Big Board,” and for good reason. It’s the largest, oldest and best-known stock exchange in the world.
  6. Professionals

    Registered Traders

    A registered trader is an exchange member who trades for their own account and for their own profit and loss. Orders may not originate on the floor of the NYSE; however, registered traders are ...
  7. Personal Finance

    8 Ways To Fly First Class For Cheap

    Try these strategies to teleport yourself out of coach and into one of those comfortable first class (or business class) seats.
  8. Home & Auto

    6. Reveal and Restore Hardwood Floors

    These home upgrades can be achieved for surprisingly little money.
  9. Investing

    How The NYSE Makes Money

    We examine how the New York Stock Exchange, the leading US stock exchange, makes money.
  10. Retirement

    Electronic Trading: The Nasdaq Vs. The NYSE

    From a glance, the difference between the New York Stock Exchange (NYSE) and Nasdaq may not be marked. The NYSE lists household names like Coca-Cola, Wal-Mart, Citicorp, and General Electric, ...
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 >>
  2. What is an ABC Agreement?

    Brokerage and other financial organizations usually purchase seats or memberships at the New York Stock Exchange (NYSE) for ... Read Answer >>
  3. Why are traders on the floor of the exchange?

    Before the advent of electronic trading platforms, the floor of the stock exchange was the location for market transactions ... Read Answer >>
  4. What is an available seat mile in the airline industry?

    Learn how to calculate and leverage available seat miles as a component metric of a commercial airline's operational health ... Read Answer >>
  5. A _______ is a person on the trading floor of certain exchanges who holds an inventory ...

    The correct answer is d. A good example of an exchange using the specialist system is the NYSE. Each stock listed on the ... Read Answer >>
  6. What exactly is being done when shares are bought and sold?

    Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center