NYSE Seat
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Can someone tell me why the value of a seat on the NYSE has skyrocketed lately?
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1. Can someone tell me why the value of a seat on the NYSE has skyrocketed lately? (e.g., buying electronic trading company Archipelago Holdings Inc. has impacted the price of seats).
I have founded conflicting evidence, as some write-up say that the value is actually lower, rather than skyrocketing as it was prior to December 2005. Ler/s look at examples.
Definition: A membership with NYSE
Owning a seat on the NYSE enables one to trade on the floor of the exchange, as an agent either for someone else (floor broker) or for one's own personal account (floor trader). The phrase "owning a seat on the exchange" originates in a time before 1871, until which the exchange operated in a 'call-market' fashion, which means stocks were traded individually. With this type of trading, each member would sit in an assigned seat and participate in the buying and selling of desired stocks as they were called for trading. http://www.investopedia.com/terms/s/seat.asp
Example:
UPDATE 2-NYSE seat sells for $3.55 mln - below peak - Reuters
A membership seat on the New York Stock Exchange sold for $3.55 million on Thursday, a day before such sales cease as the 213-year-old Big Board gears up to become a public company. The price is down $50,000 from the last seat sale of $3.6 million, which occurred earlier in the day on Thursday. Seat prices, which give the owner the right to trade on the Big Board, were at a record $4 million prior to Dec. 6, when exchange members voted to approve the NYSE's plan to buy electronic trading company Archipelago Holdings Inc. and go public. Under those plans, seat sales will cease at the end of the year before the NYSE goes public -- expected in late January 2006. The last day for seat sales will be Friday.... (Click on link for more).
http://wallstfolly.typepad.com/wallstfolly/2005/12/
Some investors believe a proposed phase-out of historical floor trading in favor of an all-electronic trading system could limit the potential for some seat owners to find trading profit ...
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