Preference

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Preference

Refers to over-the-counter trading. Selection of a dealer to handle a trade despite the dealer's market not being the best available. Often the "preferenced dealer" will then move his market in line.

Preference

The practice of executing trades and other transactions by means other than the open market. For example, if one needs roofing repairs on one's house, one may select one's brother's roofing business even if it is more expensive. In securities, preference often occurs in over-the-counter trades, especially within a brokerage. Preference can, but does not always, lead to economic inefficiency.

preference

The practice of matching customers' buy and sell orders away from the primary exchange. Preferencing is opposed by the New York Stock Exchange because it claims the practice unfairly benefits brokerage firms and doesn't give customer orders the chance to see other customer orders in a public market. Compare in-house trade.
References in periodicals archive ?
Student Preferred Learning Environments compared to their Actual Perceptions
The Term Preferred Share (TPS) rules impose significant restrictions on the design of Canadian equity instruments and reduce the depth and vibrancy of Canada's capital markets.
The Service eventually settled with Enron and allowed the loans issued in connection with the preferred securities to be treated as debt.
Although preferred stock may not come with rock solid backing, it offers safeguards.
Dividends on convertible preferred stock are taken into account to determine income that's applicable to common stock.
The trusts will use the proceeds to purchase BAC's junior subordinated notes and contracts to purchase perpetual noncumulative preferred stock to be issued by BAC at a future date.
The Taxpayer Relief Act of 1997 amended sections 351, 354, 355, 356 and 1036 of the Internal Revenue Code to, in general, treat certain preferred stock as "property other than stock" for purposes of the specified sections.
However, any excess cash flow generated will likely go to reducing the preferred stock obligation, which Fitch views as a formidable challenge given RCCC's high leverage.
8 million shares of Series B and Series C Preferred Stock would be reclassified into approximately 3.
25 per share was declared on the outstanding 4% Non-Cumulative Preferred stock, payable on April 3, 2007, to shareholders of record at the close of business on March 12, 2007.
The issuer's business activities will be limited to the following: issuing the issuer preferred securities; investing in eligible assets; entering into the reinsurance agreement, the securities issuance agreement, the asset swap agreement, the interest swap agreement and related agreements; and other necessary activities related to the performance of the aforementioned documents.
FAIRCHILD INDUSTRIES COMMENCES PREFERRED STOCK EXCHANGE OFFER