Two Dollar Broker

AAA

DEFINITION of 'Two Dollar Broker'

A floor broker who executes orders for other brokers who cannot do it themselves because they have more business than they can handle at that particular time.

INVESTOPEDIA EXPLAINS 'Two Dollar Broker'

The name came about because brokers were once paid $2.00 for a round lot trade. Today, commission is negotiated.

RELATED TERMS
  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  3. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  4. Principal

    1. The amount borrowed or the amount still owed on a loan, separate ...
  5. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
Related Articles
  1. Brokers and Online Trading
    Options & Futures

    Brokers and Online Trading

  2. The NASDAQ Pre-Market: What You Need ...
    Investing Basics

    The NASDAQ Pre-Market: What You Need ...

  3. Is Belfort's
    Investing

    Is Belfort's "Wolf" The Real Wall Street?

  4. What does the Daily Average Revenue ...
    Investing Basics

    What does the Daily Average Revenue ...

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  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. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center