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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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 ?
Urban-rural breakdown: In urban areas, 72% said they prefer city life, 27% said they prefer village life, and 1% said they did not know or wish to respond.
In order to create high-quality learning environments, instructors should have an awareness of what students prefer and aim to meet their preferences when possible (Walker, 2001).
* Brief them on patient progress using communication methodologies they prefer
Suppose, for example, that 35 percent of voters prefer A first, B second, and C third; 33 percent prefer B first, C second, and A third; and 32 percent prefer C first, A second, and B third.