An individual on the floor of the NYSE who owns a trading license and buys and sells for his or her personal account is called a:
A) floor trader.
B) exchange customer.
C) specialist.
D) floor broker.
E) market maker.

Question

Quizplus · Accepted Answer

A floor trader is an individual who owns a trading license and buys and sells securities for his or her personal account on the floor of the NYSE. This is different from a floor broker who executes trades on behalf of a client or a specialist who facilitates orderly trading in a particular stock. An exchange customer refers to any individual or institution that trades on the exchange, while a market maker is a firm that provides liquidity by buying and selling securities.

An Individual on the Floor of the NYSE Who Owns