Membership or a seat on the exchange

Definition:

A limited number of exchange positions that enable the holder to trade for the holder's own accounts and charge clients for the execution of trades for their accounts. Related: member firm.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Relative yield

Often refers to a yield on a security relative to the yield on a benchmark security (i.e. a ratio). It is more common to consider a yield spread which is just the difference in two yields.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio