Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,586,450,935 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Proprietary Trading

   Also found in: Wikipedia 0.01 sec.
Proprietary trading
Principal trading in which firm seeks direct gain rather than commission dollars.

Proprietary Trading
The act or practice of an investment bank conducting trades on its own account, rather than on behalf of a client. Proprietary trading has three primary benefits. First, it allows the investment bank to profit on its own instead of simply collecting commissions and fees from clients. Secondly, it lets the bank build an inventory of securities. This can be useful if a client places an order for the securities in an illiquid market. In such a situation, the investment bank can fill the order from its own inventory. Finally, proprietary trading allows the bank to make a market when it is assigned to ensure the liquidity for a given security.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
net (Staff Writer) The Securities and Exchange Commission today charged a pair of lawyers for tipping inside information in exchange for kickbacks as well as six Wall Street traders and a proprietary trading firm involved in a $20 million insider trading scheme.
The year-on-year increase in net income was principally due to the elimination of trading losses incurred in the prior year period following the termination of proprietary trading activities in 2008.
NewsEdge API allows easy integration of news feeds into websites, proprietary trading platforms and algorithmic applications.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.