Think about the New York Stock Exchange - you know, that place where people buy and sell stocks - as a club. There are full members and there are not-quite full members. An allied member is in the not-quite category.
While not personally a member of the NYSE, an allied member is affiliated with a company that is a full member. He or she must work as an officer of a member company (meaning a high-ranking bigwig there) or have a sufficient stock holding in the firm. He or she must also pass an exam. Once approved, the allied member can conduct business on the NYSE and go onto the trading floor, where the real fun happens.
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Finance: What is a member firm? (as oppo...6 Views
Finance allah shmoop What is a member firm Well so
what's the big club here Skull and bones No alphabetic
I know order of the phoenix No And our apologies
to this is rowling There it's one of the more
exclusive clubs on wall street A member firm is a
broker dealer where in at least one of the key
people who run the firm is a member of the
new york stock exchange or of another major exchange or
clearinghouse corporation or a player in an s r o
a self regulatory organization like you know finn ra or
see bob or one of dozens of other org's with
mysterious sounding acronyms and that's basically it The key here
is that your firm has somebody who's connected wired a
player in a not new york mafia kind of way
either and that they're able to trade on the exchange
floor giving their firm you know a handy leg up
and just a side note This club is also a
biggie on wall street but well you've got to be
over twenty one and have a keen appreciation of finance 00:01:05.984 --> [endTime] funds to get in that's the shmoop club
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