What is an ABC Agreement?
When it comes to ensuring that seats on the New York Stock Exchange are used properly, the preparation and approval of an ABC agreement is vital. Designed to be an agreement between the brokerage firm that provides the financing for the NYSE seat and the employee of the company who purchases right to use the seat, the ABC agreement must be meet the qualifications established by the NYSE. Here are some examples of the provisions that are commonly found in ABC agreements. One of the factors that must be understood is that the Stock Exchange imposes a number of rules or restrictions on brokerage firms and other financial organizations that are allowed to hold a seat in the NYSE. Essentially, the restrictions are in place to ensure there is not an opportunity for any stock brokers who are less than ethical to represent the firms that have provided the financing of seats at the Exchange. The restrictions are aimed at company level and not individual level. This motivates the firms that fina
