Privilege Dealer

  

Categories: Marketing

A “privilege dealer” is the same thing as an options dealer. That’s it. Nothing fancy. Nothing to do with special privileges or exclusive back-room deals or anything like that.

Basically, in order to be a real-deal privilege dealer, a broker or brokerage firm has to be registered as such. They deal with options, futures, and listed equity options contracts, and they have to comply with some pretty stiff SEC rules and regs.

Related or Semi-related Video

Finance: What is a Floor Broker v. Floor...13 Views

00:00

Finance allah shmoop What is ah floor broker versus a

00:06

floor trader All right Well here's a floor fixer and

00:11

here's a floor broker but okay Shocking a floor broker

00:16

Brokers stocks on the floor of a stock exchange Right

00:22

Well here's the new york stock exchange here's its floor

00:25

These guys down here they're floor brokers That is they're

00:28

trading stocks and other securities on behalf of their clients

00:32

Basically this is the scene from trading places with eddie

00:36

murphy Great old film Old rich white guys in a

00:39

building up here Call down to their guys on the

00:41

floor who execute their bidding All right well it's a

00:44

bunch of brokers all trading their clients stocks right here

00:47

and here And here and here and here all over

00:49

the world within among each other So that money is

00:52

well pushed around thoroughly like that Cato's in grandma's hash

00:55

browns recipe Note that a floor broker is different from

00:58

a floor trader Who although he or she works on

01:02

the floor of an exchange also makes trades as a

01:05

principal for his or her own account So yeah that's

01:08

floor broker No jackhammer required Thank you very much Go

Up Next

Finance: What is a Broker-Dealer?
16 Views

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...

Finance: What does a stock broker do?
19 Views

What does a stockbroker do? Stockbrokers use money from investors to invest in the stock market. Their first job is to go out and find these client...

Finance: What is a Full-Service Broker?
3 Views

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...

Find other enlightening terms in Shmoop Finance Genius Bar(f)