A broker on the floor of an exchange who acts as agent for a particular brokerage house and buys and sells stocks for the brokerage house on a commission basis.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A person on the floor of an exchange who trades securities on behalf of a brokerage or investor. He/she may only make trades as directed by the client, or may have some leeway in the trades he/she makes. For his/her services, this person is paid a commission, which is a percentage of value of each transaction the broker makes. In order to guard against abuse, commission brokers working with discretionary accounts are required to follow suitability rules, which mandate that the broker only make trades in good faith, that is, only makes trades a "reasonable person" would make.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An employee of a member firm of an organized securities exchange who transacts orders for the firm or its customers on the exchange floor. Orders flow to the commission broker from the firm's trading desk or from its registered representatives.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.