What is an 'Allied Member'

An allied member is a person who is not a member of the New York Stock Exchange (NYSE) but is an officer or voting shareholder of a firm with a membership. Allied members can complete transactions on the NYSE and are granted access to the trading floor but cannot do business on the trading floor.

BREAKING DOWN 'Allied Member'

People who want to be recognized as allied members must meet the rules outlined in the NYSE's Rules of the Exchange. In addition to fulfilling these requirements, the person must complete a written examination.

In order to be eligible to write the exam, shareholders must own at least a 5% stake in the member firm. Other eligible people include the company's directors or other controlling partners, and anyone the firm deems a principal executive.

A member firm is a brokerage firm that holds at least one membership on a major U.S. stock exchange and is a member of a self-regulatory organization. In the case of the New York Stock Exchange, individuals (not business entities) such an officer or voting shareholder of a firm with a membership are designated allied members, if they meet the eligibility requirements.

  1. Member Firm

    A member firm is a brokerage firm that holds at least one membership ...
  2. Member

    A member is a brokerage firm (or broker) holding membership on ...
  3. Big Board

    Big Board is a nickname for the New York Stock Exchange (NYSE).
  4. Allied Lines

    Allied lines are any type of property-casualty insurance closely ...
  5. Exchange

    An exchange is a marketplace in which securities, commodities, ...
  6. Listed Security

    A listed security is a financial instrument that is traded through ...
Related Articles
  1. Investing

    Ally's Diversification Should Support Profit for Next Few Quarters: Zacks

    Ally Financial's push into other markets should support profitability for the next few quarters, predicts Zacks Investment Research.
  2. Investing

    Ally Financial to Spend Money on Ally Invest, Stock Buybacks

    Ally Financial plans to invest money into Ally Invest, Ally Home and repurchasing shares of the company's stock.
  3. Investing

    Ally Financial Named a 2018 'Financing Favorite'

    Ally Financial landed on Forbe's contributor MoneyShow's list of the top finance stocks for 2018.
  4. Investing

    Ally Financial: More Than 50% of New Customers Are Millennials

    More than 50% of Ally Finaincal's new customers are millennials that want more than just banking.
  5. Investing

    Ally Financial Gets Accolades for Tech-Led Customer Service

    Ally Financial's Ally Bank got accolades for customer service thanks to Ally Card Controls app and Ally Skill for Alexa.
  6. Investing

    Ally Financial Diversification Efforts Prompt Outperform Rating From Oppenheimer

    Oppenheimer started coverage of Ally Financial stock, saying that the company's diversification strategy will pay off.
  7. Investing

    Ally Bank Drops Phone Chargers on Customers to Promote Mobile Investing

    Ally Bank recently delivered phone chargers via drone to shoppers in North Carolina as it embraces unique marketing techniques.
  8. Investing

    Ally Bank Among Few Banks Successfully Cross-Selling Wealth Management

    Ally Bank got accolades in a new survey for cross-selling wealth management products and services.
  9. Investing

    Ally Financial's Venture Arm Invests in Startup That Makes Debit Cards for Kids

    Ally Ventures, a unit of Ally Financial, has invested in Greenlight Financial, which makes a credit card for kids.
  10. Trading

    Ally Financial Earnings Under Pressure

    Analysts expect Ally Financial to earn 59 cents a share when they report third quarter earnings before the opening bell on Wednesday.
  1. What can shareholders vote on?

    Understand the usual voting rights of common stock shareholders, along with the importance of shareholders exercising their ... Read Answer >>
  2. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  3. Can a Limited Liability Company (LLC) issue stock?

    Learn about a limited liability company, or LLC, and if it is able to issue stock. Understand the benefits of an LLC, both ... Read Answer >>
  4. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to? ...

    The Nasdaq and the NYSE are stock exchanges that trade securities. Nasdaq stands for National Association of Securities Dealers ... Read Answer >>
Trading Center