Final answer:
A floor broker is a person with a trading license who represents orders on the floor of a stock exchange. They act as intermediaries between buyers and sellers, executing orders and ensuring smooth and efficient trades.
Step-by-step explanation:
A floor broker is a person with a trading license who represents orders on the floor of a stock exchange, such as NASDAQ. On the floor of the exchange, brokers meet buyers and sellers to facilitate the trading of securities and stocks. They act as intermediaries between buyers and sellers, executing orders and ensuring that trades are executed smoothly and efficiently.
For example, let's say a buyer wants to purchase 100 shares of a particular stock. The floor broker will represent the buyer and find a seller who is willing to sell the shares. Once the transaction is agreed upon, the floor broker will facilitate the trade and ensure that the buyer receives the shares and the seller receives the payment.