A type of mutual fund that charges its holders 12B-1 fees instead of up-front or back-end commissions. 12B-1 funds take a portion of assets held and use…

A stock's closing price on any given day of trading that has been amended to include any distributions and corporate actions that occurred at any time…

A type of investment account where an investment advisor works closely with a client in formulating and implementing investment purchases and strategies…

A broker that acts as an agent to its clients. When acting as the agent, the agency broker must look after its clients' best interests, which involves…

A trading system that is not regulated as an exchange, but is a venue for matching the buy and sell orders of its subscribers. Alternative trading systems…

A positive endorsement that an analyst makes regarding a company's stock. Analyst sponsorship can change over time as new information is revealed. The…

A set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide…

A list of pre-selected securities that are deemed fit for purchase by a mutual fund or the clients of a brokerage firm.In both cases, the intent is to…

Institutional investors who are allowed direct access to an exchange’s trading environment.  Approved participant status usually affords trade execution…

A financial market consisting of parties that have no relationship or contact with one another aside from the transaction at hand. In the United States…

An order specifying that a trade is to be executed at the close of the market, or as near to the closing price as possible. It's essentially a market…

A system where potential buyers place competitive bids on assets and services. The asset or service in question will sell to the party that places the…

A system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The National Securities…

Funds that are available to an account holder for withdrawal or other use. This may include funds from an overdraft facility or line of credit, as well…

The balance on a loan or depositary account. A simple average balance is calculated by dividing the beginning balance plus the ending balance by two.A…

1. For credit card vendors, a business's average ticket refers to a way of computing the average size of its individual sales by credit card.2. For broker…

A quoting convention used by financial institutions when quoting prices for fixed-income securities sold at a discount, particularly U.S. Government issues…

A single order to buy or sell a set of 15 or more securities. Basket trades are used by institutional investors or program traders to invest large amounts…

A standard record of information regarding the transfer of a group of data (a batch), usually within the banking field. The batch header record contains…

A method of transacting different security orders that involves the accumulation of orders and their simultaneous execution. For example, a security…

A security not registered in the issuing corporation's books but that is payable to its bearer (the person possessing it). Securities can be issued in…

An order to buy or sell a security at a price lower than the current market price. Investors may choose to place a limit order to buy, a stop order to…

The responsibility of brokers to provide the most advantageous, or best price, order execution for customers.Basically, this is a precautionary measure…

A situation where an institutional investor submits its bond bid list to various securities dealers. In a bid-wanted-in-competition situation, the dealers…

A situation in which a financial professional or institution sends a recommendation to all clients to buy or sell a particular security or product, regardless…

When brokerage firms ensure anonymity to both the buyer and the seller in a transaction. In the ordinary course of securities trading, most brokerage…

A large amount of the same security bought or sold by institutional or other large investors. There is no official size designation constituting a block…

A brokerage whose major concern is finding potential buyers and sellers of block trades. These guys deal with the big boys, not individual investors…

An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order". In general, 10,000 shares of stock (not…

An account that is subject to foreign exchange controls in a country that restricts the amount of its currency that can be transferred to other countries…

A standardized number of shares defined by a stock exchange as a trading unit. In most cases, this means 100 shares. The purpose of a board lot is to…

A place where high-pressure salespeople use banks of telephones to call lists of potential investors (known as a "sucker lists") in order to peddle speculative…

A small investment firm specializing in offering specific, but limited services to a select number of individuals. These investment firms are the alternatives…

1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. 2. The role of a firm when it acts…

A permitted association between exchange members who have shared responsibility for the execution of orders placed by their customers. These members thereby…

The interest rate relative to which margin loans are quoted. Also known as the call loan rate. This rate is published daily in The Wall Street Journal…

A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction. Technically…

A type of broker that acts as an intermediary between large brokerages and their clients. Broker-resellers typically take stock orders from clients and…

An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through…

A business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies…

A fee charged by an agent, or agent's company to facilitate transactions between buyers and sellers. The brokerage fee is charged for services such as…

An independent firm or contractor working for an insurance company whose main function is to sell one or more insurance products to select insurance brokers…

A brokerage company employee who appoints, trains and manages brokers and who sells the company's products to those brokers, who then sell them to clients…

The ability to direct trading within a brokerage's offering through a retirement plan such as a 401(k). As opposed to being limited to the investment…

A large-denomination deposit similar to a certificate of deposit. A brokered deposit is sold by a bank to a brokerage, which then divides it into smaller…

1. A fraudulent brokerage firm that uses aggressive telephone sales tactics to sell securities that the brokerage owns and wants to get rid of. The securities…

A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which…

A slang term referring to the traditional seating arrangement of younger investment advisors or brokers in a brokerage house. Traditionally, younger…

The combining of odd-lot or round-lot orders for the same security so that they may be executed at the same time. Brokers cannot bunch orders together…

A type of order where a client instructs the broker to purchase a stock at a price below the current market price.An example is placing a buy order at…