Interpositioning

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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.
References in periodicals archive ?
In this study, we aimed to compare the hearing benefits of patients who underwent reconstruction with incus interposition and hydroxyapatite partial ossicular replacement prosthesis due to an incus defect.
Interpositions should concentrate on recognizing barriers of consuming calcium and physical activity and enhancing the beliefs in the capability for overcoming them2.
Interposition flaps in transabdominal vesicovaginal fistula repairs: are they really necessary?
15 Another one used omental interposition and reported 85% and 100% success rate with transvaginal and transabdominal approaches; transabdominal being more successful.
van der Eyken, "Irreducible anteromedial dislocation of the radius: a case of biceps tendon interposition," Acta Orthopaedica, vol.
13) A number of tissue interposition options exist, such as gracilis, dartos, gluteus maximus, omentum, island groin, scrotal myocutaneous, and dartos pedicle flaps.
9) However, if there is degeneration of the medial wall or complete occlusion, complete excision with interposition of a bypass vessel graft is recommended.
Topazian's1 review of gap arthroplasty without interposition reported a recurrence rate as high as 5% pertaining to condylectomy as method of treat- ment.
The First Amendment precludes interposition of any such "protection" in the first place and what is protected is the right of the governed, not the government.
In his interposition at the meeting, the Minister of Foreign Affairs, thanked the Kingdom of Norway for its constant keenness on holding this meeting and asserted anew the unwavering supportive position of the Kingdom of Bahrain towards the brotherly Palestinians in all fields, pointing out to the need to continue this assistance and support despite the challenges faced by the Peace Process, which has to reach a settlement to end the sufferings of the Palestinian people.
Root fracture healing was divided into four events by radiographic and histological observations: healing with calcified tissue, interposition of connective tissue, interposition of bone and connective tissue, interposition of granulation tissue In this case, dislocation of the coronal fragment was pronounced in teeth 11 and 21, mobility is important; the fractured tooth had mature root formation.
A left postauricular type III tympanoplasty with an incus interposition graft and canaloplasty was performed.