Five percent rule

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Five percent rule

A rule of the National Association of Securities Dealers providing ethical guidelines for spreads created by market makers and commissions charged by brokers.

Five Percent Rule

1. An ethical guideline for FINRA members. While the rule does not impose any particular restrictions, it discourages dealers from having an excessive dealer's spread and brokerages from charging excessively high commissions.

2. An SEC rule stating that a person or organization must report buying or acquiring more than 5% beneficial ownership in any one equity stock.
References in periodicals archive ?
However, since 2011, we increasingly started to notice the return of the 5 percent rule in the party in both its domestic and foreign policy choices as party leader Recep Tayyip Erdoy-an consolidated his power within the party and in the government.
When the 5 percent rule strongly asserted itself in Turkey's foreign policy choices, albeit unrealistically and detached from realism, we started to see failures, one after another.
He asked that the secretary of state be contacted to see if there can be a waiver of the 5 percent rule.
If you buy the 5 percent rule, that means you need to try to make 27 minutes for proactive thinking.
Hence I shall continue to support the 5 percent rule as an intermediate objective greatly superior to present practice.
Applying a blanket 5 percent rule, particularly to inmate housing areas, would place an undue financial and administrative burden on correctional agencies; this would not be in keeping with the intent of the ADA.
The Pennsylvania Department of Corrections (DOC), in coordination with the state's Department of General Services, challenged the 5 percent rule.
The Toronto Stock Exchange's 5 percent rule governs the maximum allowable buy back during any twelve month period.