ABC Agreement Definition
An agreement between a brokerage firm and employee that outlines the rights of the firm when buying a New York Stock Exchange membership for the employee. It is a NYSE-approved agreement which call for three provisions for the future transfer of the seat.
(A) The employee may retain the seat, but must buy another seat for a person selected by the firm.
(B)The seat may be sold by the employee, in which case all proceeds from the sale would go to the firm.
(C)The seat may be transferred to another employee of the firm by the employee who holds the seat.