riskless transaction

(redirected from Simultaneous Transactions)

Riskless transaction

A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%.

Riskless Transaction

A transaction where a gain is guaranteed by the structure of the transaction. To give a very simple example, one may find a client who wishes to purchase a security at $10 per share when one knows that the current price is $9.50 per share. One then buys the security at the current price and instantly re-sells to the client for a 50 cent per share guaranteed profit. This is also called a simultaneous transaction. See also: Arbitrage, Risk-free return.

riskless transaction

A dealer transaction in which the dealer makes a purchase or sale to offset a customer order. Thus, if a customer wishes to purchase 500 shares of Rushville Exterminators, Inc., at $80 per share, the dealer may purchase the 500 shares from another source at $79.25 and resell the stock to the customer at a markup of 75¢. The dealer has entered into a riskless transaction because the purchase will be offset by an existing customer order. The markup on riskless transactions is regulated by the National Association of Securities Dealers. Also called simultaneous transaction. See also five-percent rule.
References in periodicals archive ?
4 times of the same period of last year, and its capacity of handling over 10 million simultaneous transactions per second is unrivaled in the industry.
And, because responsive design relies on the browser to optimize a web page for the device, it frequently results in longer page-load times - a major concern for operators of websites with massive simultaneous transactions.
0 this summer, it is now possible to process virtually unlimited simultaneous transactions with only a fraction of those servers.
Enabling simultaneous transactions and analytics in real time on the same data set, DeepDB brings unprecedented scale, simplicity and speed to data-driven decision making at large organizations.
com)-- The new OS improves the transaction processing capacity of its platforms making Woodlake Commodity Solutions' OS one of the most advanced OS in the industry highly capable of handling simultaneous transactions globally.
Deepak Khullar, Chief Financial Officer of ADCB said, "The simultaneous transactions are ADCB's largest ever debt offering and includes the largest subordinated debt issue by a Middle Eastern bank ever.
The ICFA jurists clearly stipulate in Resolution 179 that: "It is not permissible to execute both organized and reverse Tawarruq because simultaneous transactions occurs between the financier and the Mustawriq, whether it is done explicitly or implicitly or based on common practice, in exchange for a financial obligation.
Building Scalable Web Sites, published by O'Reilly, explains how to design and build applications that scale quickly and it includes information on designing the software architecture underneath a web application, and partitioning and distributing databases to support large datasets and simultaneous transactions.
The two sales were independent simultaneous transactions and should be taxed as such.
Judgment software, integrated into a network that gathers information and decisions from credit agencies, MIs and appraisers will convert the longest duration tasks to nearly simultaneous transactions.
The inclusion of specialized hardware accelerators on the server platforms enables the AG1000 to scale to very high rates of simultaneous transactions processed.
Statoil said : 'In Block 39 the 10% divestment is accomplished through two separate, but simultaneous transactions.

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