A crowd of floor traders on the NYSE

Question

Quizplus · Accepted Answer

Floor traders on the NYSE have the advantage of being able to interact directly with the specialist who sets the bid and ask prices for a particular stock. This allows them to negotiate for a more favorable price on behalf of their clients "inside" the quoted prices. This is known as trading at the "inside market" and is a common practice on the NYSE. Options B and C are not accurate as floor traders are not obliged to execute trades through a specialist and are not allowed to "front run" their own trades ahead of customer trades.

A Crowd of Floor Traders on the NYSE