Two Dollar Broker

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.

Notes:

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

See also: Agent, Broker, Broker-Dealer, Dealer, Discount Broker, Front Running, Full Service Broker, Give Up, Market Maker, Principal

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Two dollar broker

Floor broker of the NYSE, who executes orders for other brokers having more business at that time than they can handle with their own private floor brokers or who do not have their exchange member on the floor.