Investopedia

Seat

Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  2. How Stock Market Indexes Changed Investing

    Find out how the first market averages were calculated and what they mean for investors today.
  3. Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  4. The Birth Of Stock Exchanges

    Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE.
  5. Role Of A Market Maker

    A market maker is a firm or an individual that stands ready to buy and sell a particular security throughout the trading session to maintain liquidity and a fair and orderly market in that security. ...
  6. Decline Of The Independent Broker-Dealer

    Since the financial crisis of 2008-2009 the numbers of independent broker-dealers have been steadily declining. Find out why, and if the trend will continue.
  7. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...
  8. What happens if I cannot pay a margin call?

    Minimum margin is the amount of funds that must be deposited with a broker by a margin account customer. With a margin account, you are able to borrow money from your broker to purchase stocks ...
  9. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.
  10. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center