Interpositioning

The practice of using a second broker in a securities transaction, which is considered illegal it is if used to generate additional commission.

Interpositioning

The act or practice of adding another broker-dealer to a transaction when there is no reason to do so and the extra broker-dealer does not provide a necessary service. Generally speaking, interpositioning occurs when two broker-dealers agree to insert the one into the dealings of another. This allows both to extract commissions without doing any work; obviously this is detrimental to the client because it forces him/her to pay money he/she does not need to pay. Interpositioning is illegal under the Investment Company Act of 1940, but it still occurs. Indeed, it was relatively common during the first few years of the 2000s.

interpositioning

The involvement of a third party between a broker-dealer and the best available market price that results in the customer paying a bigger markup or markdown than would have been the case if the third party had not been present. For example, Dealer A satisfies a customer order to buy a security by purchasing the security through Dealer B who in turn purchases the security from the market maker. Dealer B marks up the security to Dealer A, who then marks up the security again when selling it to the customer. Interpositioning is considered unethical by the National Association of Securities Dealers.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive

Profiling and tracing dynamic library usage via interposition. In Proceedings of the USENIX 1994 Summer Conference.

Detecting anomalies in high-performance parallel programs

In this present case, we presume the bleeding ulcer in the jejunal interposition to be the potential gate for C.

Clostridium perfringens Septicemia and a Bleeding Ulcer of a Jejunal Interposition: A Case Report and Short Review of the Literature

Cummings BP, Strader AD, Stanhope KL, Graham JL, Lee J, Raybould HE, Baskin DG, Havel PJ (2010) Ileal interposition surgery improves glucose and lipid metabolism and delays diabetes onset in the UCD-T2DM rat.

ILEAL INTERPOSITION SURGERY DID NOT PREVENT THE ONSET OF TYPE 2 DIABETES IN RATS

The ligament reconstruction tendon interposition (LRTI) is the workhorse surgical procedure for CMC arthritis.

Basal Joint Arthritis: A Review of Pathology, History, and Treatment

The processes observed in the speech assessment were omission, substitution, distortion and tongue interposition. There was a difference between the groups for the distortion and tongue interposition variables, the higher number of alterations occurring in the Research Group.

Speech production assessment of mouth breathing children with hypertrophy of palatines and/or pharyngeal tonsils

Materials and Methods: Fifty-two age-matched male and female rats (different genotypes) were treated with either sham or ileal interposition surgery.

HEALTH SCIENCE PAPER ABSTRACTS

The left colonic portion vascularized by the left colonic artery was prepared for the interposition. Left cervical incision was made through the skin and platysma muscle along the anterior border of the sternocleidomastoid muscle.

Thoracoscopic vagal-sparing esophagectomy and colonic interposition for caustic stricture

Chilaiditi syndrome was first defined as a hepatodiaphragmatic interposition of the colon or small bowel by a Viennese radiologist named as Demetrius Chilaiditi in 1910 (2).

Chilaiditi Syndrome: A Rare Cause of Shortness of Breath and Abdominal Pain

Surgery for osteoarthritis includes arthroscopic debridement, resection arthroplasty, interposition arthroplasty, ulnohumeral prosthesis, total elbow prosthesis, and arthrodesis [2].

The Waterfall Fascia Lata Interposition Arthroplasty "Grika Technique" as Treatment of Posttraumatic Osteoarthritis of the Elbow in a High-Demand Adult Patient: Validity and Reliability

In 2009, Sato and colleagues reported 4 cases of PVT treated with a superficial femoral vein (SFV) graft interposition during living donor LT [6].

Extra-Anatomic Jump Graft from the Right Colic Vein: A Novel Technique to Manage Portal Vein Thrombosis in Liver Transplantation

In order to shape cylindrical interposition grafts, patches were rolled over a tube and sutured.

The Falciform Ligament for Mesenteric and Portal Vein Reconstruction in Local Advanced Pancreatic Tumor: A Surgical Guide and Single-Center Experience