Section: 7 Trading on Exchanges
Sub Section: 7 The Participants
When an investor instructs a broker to buy or sell securities, a number of players
must act to consummate the deal. The investor places an order with the broker.
The brokerage firm for which the broker works, and which owns a seat on the exchange,
contacts its commission broker who is present on the floor of the
exchange to execute the order. When the firm's commission brokers are overloaded
and have too many orders to handle, they will use the services of floor brokers
who are independent members of the exchange (and own seats) to execute orders.