proceeds sale

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Proceeds sale

OTC securities sale whose revenue is used to buy another security.

Proceeds Sale

The sale of a security where the revenue from the sale is used immediately to buy another security. FINRA considers both the sale and the purchase to be a single transaction and one may not charge more than a 5% markup in a proceeds sale.

proceeds sale

A transaction in which funds received from selling a security are immediately reinvested in another security. The National Association of Securities Dealers regards a proceeds sale as a single transaction; therefore, the member's commission or markup cannot exceed 5% of the principal of the trade.
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Example 2 -- Assume that in order to entice Ted to donate his auto, the agent promised to issue a written acknowledgement to Ted indicating a gross proceeds sales price equal to the blue book retail value of $8,400, instead of the actual auctioned price of $4,000.
During 1998, disposition proceeds sales represented nearly 50 percent of CenterPoint's $206 million in new investments, greatly reducing the company's dependence on capital markets.
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