DEFINITION of Telephone Booth
In the parlance of the trading world, telephone booth refers to one of the many phone terminals on the floor of the New York Stock Exchange (NYSE) that are used by floor traders to receive orders. The NYSE charges a fee to exchange members to access the booth telephone system. With the advent of technology, orders received through the telephone booth are less common.
BREAKING DOWN Telephone Booth
Investors who wish to buy or sell a security can affect their transaction in a number of ways, such as by calling a broker or trading through an online brokerage account. The telephone booth terminals exist to handle communications between the investor and the broker, though in today's digital age, the usage of telephone orders have largely been superseded by electronic communications.
Telephone Booth Makes History
Muriel Siebert became the first woman to own a seat on the NYSE floor in 1967. Women were so rare on the trading floor that a telephone booth had to be converted into a women's restroom. Over half a decade later, Stacey Cunningham was named the first female President of the NYSE in 2018.