Member Firm

Member Firm
A member firm, also known as a member corporation, is a brokerage firm that holds at least one membership on a major stock exchange. While exchange rules stipulate that the membership is officially in the name of an employee, it is the firm that utilizes the membership.
Nonmember Firm
A nonmember firm is a brokerage firm that does not hold membership in an organized exchange. These firms execute trades through member firms, on regional exchanges, or in the third market.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.