Definition - What does ABC Agreement mean?
An ABC agreement is a type of a contract between a brokerage firm and an employee, which highlights the rights of the brokerage firm that purchases New York Stock Exchange (NYSE) membership on behalf of the employee. The member or employee purchasing the seat (with the approval of the NYSE) can hold, sell or transfer the seat to another member.
Justipedia explains ABC Agreement
The “ABC” in ABC agreement refers to three stipulations included in the agreement. The first one allows the member to transfer the seat to some other employee. According to the second one, the member can buy another seat. The third one is that the member should give the gains to the company if he or she decides to sell it.