|
 |
|
FREQUENTLY ASKED QUESTIONS (FAQs)
- What is a "specialist"?
- What are the specialists' responsibilities in
managing the trading of a company's stock?
- Why is a specialist firm's capital so important?
- How does a company listing on the NYSE determine
which specialist firm will trade its stock?
- What are some of the distinguishing characteristics
of a leading specialist firm?
-
What is a "specialist"?
Specialists manage the auction market in the specific securities
allocated to them. They must maintain a fair, competitive, orderly
and efficient market at all times, even in those market conditions
considered extreme. This means that all customer orders have
an equal opportunity to interact and receive the best price
on execution. Bear Wagner Specialists prides itself on our ability
to maintain exceptional markets in the stocks we trade in all
market conditions, even in the most difficult and volatile periods
of market activity.
- What are the specialists' responsibilities
in managing the trading of a company's stock?
Specialists perform 4 critical roles in maintaining an orderly
market for a stock:
They act as auctioneer by continually
showing the best bids and offers on each stock they trade throughout
the trading day. The specialist maintains order on the trading
floor and interacts with agents who represent customer orders
(the floor broker), as well as electronically-delivered order
flow.
The specialist acts as agent for all
electronically-routed orders. A floor broker may also choose to
leave an order with a specialist to represent it, in which case
the specialist is acting as agent for the broker,s order. As agent,
the specialist assumes the same fiduciary responsibility as a
broker.
Specialists also act as a catalyst,
bringing buyers and sellers together so they can trade with each
other. A specialist knows who has been interested in a stock,
and keeps track of all known interest.
A specialist participates as principal
by providing capital and thereby adding liquidity to the market.
They are required to use their firm's capital to bridge temporary
gaps in supply and demand and help reduce price volatility by
cushioning price movements. It is the willingness to employ
this responsibility of providing capital that distinguishes an
exceptional specialist firm.
- Why is a specialist firm's capital so
important?
The amount of capital available to the specialist is a factor
in determining the level of liquidity in the market for the stocks
they trade. The specialist utilizes that capital when market conditions
dictate by purchasing or selling stock in order to balance supply
and demand. Our record of committing our capital resources
in ALL market conditions has earned us the trust and respect of
both the financial community and the listed companies we represent.
- How does a company listing on the NYSE
determine which specialist firm will trade its stock?
Companies listing on the NYSE today have the option of choosing
their specialist by interviewing representatives from a qualified
pool of 3 to 5 firms. The company may also choose to have their
stock allocated to a qualified specialist firm by the NYSE's Allocation
Committee.
- What are some of the distinguishing
characteristics of a leading specialist firm?
The qualities of a leading specialist firm include:
- strong capital base
- the ability to provide exceptional market-making performance
in extreme and volatile conditions
- a management team with a depth of experience and strategic
focus
- excellent communications capabilities to keep company management
informed of trading activity in their stock
Bear Wagner Specialists ranks among the top of all specialist
firms in terms of capital strength and depth of experienced
and skilled specialists. Our communications and customer service
programs are designed to provide timely and relevant information
flow on a pro-active basis to our company-designated contacts.
Most importantly, our ability to consistently maintain high-quality
markets even in the most challenging and volatile conditions
– is what sets Bear Wagner apart.
|
|
|
WHO WE ARE