Specialist Firm

DEFINITION of 'Specialist Firm'

The firms that hire the specialists to represent companies listed on certain exchanges. Companies listed on certain exchanges will interview employees of the specialist firms, seeking out suitable people to represent them by holding inventories of the companies' stocks.

BREAKING DOWN 'Specialist Firm'

In the 1980s, there were upwards of 50 specialist firms, and most were family-owned businesses. In 2008 there were 10, due to decades of mergers and acquisitions; seven of them being stock specialist firms, while the other 3 specializing in ETFs.

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RELATED FAQS
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    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  2. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, ...

    Before we address this question, let's review what specialists do. Specialists are people on the trading floor of an exchange, ... Read Answer >>
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