What it is:
In the trading world, a telephone booth refers to a phone bank on the floor of the New YorkExchange.
How it works (Example):
When an investor wishes to buy or sell a security listed on the NYSE, she "places a trade" or an "order" by calling her broker or going to her online trading account. In either case, the order goes to a broker, who can get the order to the exchange several ways -- through a regional exchange, electronic communications network, or directly to the NYSE. No matter how the order is placed, it eventually reaches the floor of the NYSE where floor and specialists handle transactions.
Why it Matters:
The telephone booth is there to handle communication between the parties, though in today's age of electronic communication and cell phones, they are quickly becoming memorabilia.