A National Association of Securities Dealers rule that requires its members to use ethical and fair standards when setting commissions and establishing quotation spreads. Although members may set markups and markdowns in excess of 5%, they must be able to justify the commissions and spreads if complaints are filed.
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.