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 ?
Through three stages (before interposition, immediately after interposition, and two month after interposition) these groups were evaluated.
Mean scores of the awareness and various structures of the model (perceived vulnerability, perceived severity, perceived benefits, perceived barriers and performance) were enhanced considerably in the case group over time (immediately after and two month) after interposition (P <0.
The centrality of the figure of petitioning in Hope Leslie thus derives from the novel's reflection of and participation in the shifting contours of women's political discourse and the cultural dimensions of their petitions as rhetorical interpositions, both spoken and written.
Sedgwick viewed justified interpositions as sympathetic, mediatory acts on behalf of the "rights of innocence"--acts that in turn challenged power hierarchies in the defense of natural rights, that touched on questions of republican citizenship, and that finally found particularly persuasive expression in the form of the petition.
Moreover, the interpositions called on the government to speed up reforming the agricultural lands affected in both of Abyan and Sada provinces which witnessed military confrontations, stressing the need to pay attention to health care and education for displaced people in the different regions.
In response to the discussions and interpositions, Prime Minister Hijab said that the statement was presented within the specified timeframe as per the constitution, and that the government was careful to make sure that the statement can actually be implemented word for word.
He clarified that the decision was directly taken without the General Secretariat report being reviewed or discussed, underlining that more interpositions on the decision were not allowed during the meeting.
Mansour warned in his interposition that this step would further complicate things and will not lead to security and stability in the region.
The festival includes a symposium titled ''Theater and the Youth'' with interpositions by guests.
Shaaban noted that the dialogues, deliberations and interpositions were serious, in-depth and responsible, adding that they tended towards more scrutinizing of the proposals.
Interpositions focused on the calligraphy in Arabic and Turkish cultures and the role of Turkish calligraphers in the evolution of Arabic calligraphy.
Main carotid artery with tumor was excised and external carotid was bound in 3 patients of type 3 and the patency of the internal carotid artery was provided with PTFE graft interposition in one patient and with saphenous vein graft interposition in two patients.