A dying breed. These are wannabe broker-dealers who don’t have enough capital to build the required trading infrastructure.
Leo DiCrappio fancied himself a big-time investment banker and general Wolf of Wall Street. Unfortunately, his High School diploma and familiarity with investment-related Twitter accounts did not generate enough money for him to open a broker-dealer. Or to take the exams required for licensing by federal regulatory agencies, such as FINRA.
Undaunted, Leo began to market his securities trading savvy to friends and family who gave him their money, which he then used to trade in accounts he had opened at large brokerage firms like Charles Schwab and Goldman Sachs.
In this middleman capacity, Leo operated as a broker-reseller, legitimizing the business cards he had printed so he could show off to the girls in his neighborhood in New Jersey.
Related or Semi-related Video
Finance: What is a Floor Broker v. Floor...13 Views
Finance allah shmoop What is ah floor broker versus a
floor trader All right Well here's a floor fixer and
here's a floor broker but okay Shocking a floor broker
Brokers stocks on the floor of a stock exchange Right
Well here's the new york stock exchange here's its floor
These guys down here they're floor brokers That is they're
trading stocks and other securities on behalf of their clients
Basically this is the scene from trading places with eddie
murphy Great old film Old rich white guys in a
building up here Call down to their guys on the
floor who execute their bidding All right well it's a
bunch of brokers all trading their clients stocks right here
and here And here and here and here all over
the world within among each other So that money is
well pushed around thoroughly like that Cato's in grandma's hash
browns recipe Note that a floor broker is different from
a floor trader Who although he or she works on
the floor of an exchange also makes trades as a
principal for his or her own account So yeah that's
floor broker No jackhammer required Thank you very much Go
Up Next
What is a Broker-Dealer? A broker-dealer trades for both its own account and for the accounts of its clients. It acts as a broker when it buys and...
What is a Full-Service Broker? A full-service broker is an institution that operates as a broker-dealer. They are licensed to do just about anythin...