Business Glossary

Business Definition for: seat

Dictionary of Finance and Investment Terms

seat

figurative term for a membership on a securities or commodities exchange. Seats are bought and sold at prices set by supply and demand. A seat on the New York Stock Exchange, for example, traded for between $1 million and $2 million in the bull market of the late 1990s.

See also abc agreement , member firm

Dictionary of Computer and Internet Terms

seat

(noun) a place where a person can use a computer system or software product. The cost of software is often calculated in terms of seats. For example, a multi-user computer that supports five users has five seats; so does a group of five personal computers. See license ; per seat .
(verb) to insert an integrated circuit (IC) or a printed circuit board into a socket.

Dictionary of Business Terms

seat

figurative term for membership on a securities or commodities exchange. Seats are usually bought and sold at prices set by supply and demand.

Related Terms:

abc agreement

agreement between a brokerage firm and one of its employees spelling out the firm's rights when it purchases a New York Stock Exchange membership for the employee. Only individuals can be members of the NYSE, and it is common practice for a firm to finance the purchase of a membership, or seat, by one of its employees. The NYSE-approved ABC Agreement contains the following provisions regarding the future disposition of the seat: (1) The employee may retain the membership and buy another seat for an individual designated by the firm. (2) The employee may sell the seat and give the proceeds to the firm. (3) The employee may transfer the seat to another employee of the firm.

member firm

brokerage firm that has at least one membership on a major stock exchange, even though, by exchange rules, the membership is in the name of an employee and not of the firm itself. Such a firm enjoys the rights and privileges of membership, such as voting on exchange policy, together with the obligations of membership, such as the commitment to settle disputes with customers through exchange arbitration procedures.

member firm or member corporation

brokerage firm that has at least one membership on a major stock exchange, even though, by exchange rules, the membership is in the name of an employee and not of the firm itself.

Referring Terms:

exchange members
per seat

Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 2000, 1998, 1996, 1995, 1992, 1989, 1986 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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Business Glossary

Business Definition for: seat

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