The term “selling away” refers to when a broker sells securities products that are not offered by their firm. This can be a violation of FINRA Rule 3230, which requires firms to supervise the activities of their registered representatives. Selling away can also be a form of fraud if the products are not properly registered … Read more
An itemized statement is a list of items, usually financial items, that provides details about each item. The list may be created by an individual or a company, and it may be used for personal or business purposes. For example, an individual might create an itemized statement of expenses in order to keep track of … Read more
The American Code for Information Interchange (ASCII) is a character encoding standard for electronic communication. ASCII codes represent text in computers, telecommunications equipment, and other devices. Most modern character-encoding schemes are based on ASCII, although they support many additional characters. ASCII was developed from telegraph code and its first commercial use was as a seven-bit … Read more
A deck in finance refers to a group of securities that are being offered for sale by a broker. The broker will typically group together securities that are of similar type, such as stocks, bonds, or options, and offer them as a package to potential buyers. The buyer can then choose which securities they would … Read more
A “house call” is a visit from a representative of a brokerage firm, typically to a client’s home or office. The representative may be a broker, an investment adviser, or a salesperson. The purpose of the visit is to get to know the client, understand their investment goals, and discuss potential investment opportunities. House calls … Read more
The Dalian Commodities Exchange is a Chinese futures exchange based in the city of Dalian in the province of Liaoning. It is one of two futures exchanges in China, the other being the Shanghai Futures Exchange. The Dalian Exchange trades futures contracts on a variety of products including metals, energy and agricultural commodities. The Dalian … Read more
A clearing broker is a broker that clears trades for other brokers. When a trade is executed, the clearing broker ensures that the trade is settled according to the terms of the contract. The clearing broker also provides margin services, meaning they extend credit to brokers so that they can trade on margin. What is … Read more
The New York Board of Trade (NYBOT) is a commodities exchange that was acquired by the Intercontinental Exchange (ICE) in 2007. It is now known as the ICE Futures U.S. The NYBOT was founded in 1870 as the New York Cotton Exchange, and it was the first commodities exchange in the United States. It later … Read more
An agency cross is when a broker buys or sells securities on behalf of their client without going through another broker. In an agency cross, the broker is acting as an agent for their client, and not as a broker for another party. What is a riskless and simultaneous transaction? A riskless and simultaneous transaction … Read more
An associated person is an individual who performs certain functions at a broker-dealer firm. These functions include acting as a registered representative, placing orders for clients, and providing investment advice. The term also encompasses employees of a broker-dealer firm who are not registered representatives, such as sales assistants and customer service representatives. Which of the … Read more
