An order to buy or sell a security within the final 30 seconds of the trading session. Brokers cannot guarantee that these orders will be executed.
Bank or brokerage house departments not directly involved in selling or trading. The back office sees to accounting records, compliance with government regulations, and communication between branches.
An agent who brings two parties together, enabling them to enter into a contract to which the broker is not a principal.
Brokerage refers to the business or activity of a broker, which involves facilitating transactions between buyers and sellers in exchange for a commission. This term also refers to the commission earned from such transactions.
Buying on margin involves purchasing securities using credit from a broker, facilitated through a margin account, and is strictly regulated by the Federal Reserve Board (FRB).
A commission broker is a type of broker, usually a floor broker, who executes trades of stocks, bonds, or commodities for a commission.
Each way commission refers to the fees a broker earns for handling both the purchase and the sale sides of a trade.
An Electronic Communication Network (ECN) is a digital system that connects major stock brokerages and individual traders so that they can trade directly without needing to go through a middleman.
An exclusive agency listing is a contract in real estate giving only one broker, for a specific time, the right to sell a property. It also allows the owner to sell the property independently without paying a commission.
An exclusive right to sell listing is a contract granting a broker the right to collect a commission if a property is sold by anyone, including the owner, during the term of the agreement.
A brokerage customer's order to buy or sell a security, usually at a particular price, that remains in effect until executed or canceled.
An insured account is a type of account maintained at banks, savings and loan associations (S&Ls), credit unions, or brokerage firms that are protected by federal, state, or private insurance organizations. These accounts are safeguarded against losses, subject to certain limits.
A limit order is an order to buy or sell a security at a specific price or better. The broker will execute the trade only within the price restriction, ensuring that the desired price or a more favorable one is achieved.
A Margin Call is a demand, usually resulting from the price decline of a security bought on margin, that a customer deposit enough money or securities to bring a margin account up to the initial margin or minimum maintenance requirements. If a customer fails to respond, securities in the account may be liquidated.
A merchandise broker is an intermediary agent acting on behalf of merchandise buyers and sellers, earning commissions or fees for negotiating sales without taking possession of the goods.
Procuring Cause is a legal term predominantly used in real estate to determine whether a broker is entitled to a commission. It refers to the action that resulted directly in achieving a specific goal, such as the sale or lease of a property.
In real estate, 'ready, willing, and able' refers to a person who is capable of an action and disposed to act, particularly in terms of buying property under the terms of a listing agreement. If a broker finds such a person, they have earned their commission because they have fulfilled the requirements of the listing.
Regular-Way Delivery and Settlement refer to the standard procedure for completing a securities transaction at the purchasing broker's office on the third full business day following the trade date, as mandated by the New York Stock Exchange.
In real estate brokerage terminology, residential property refers to owner-occupied housing. These can range from single-family homes to larger multi-family units like duplexes and apartment buildings.
A securities loan involves the loaning of securities by one broker to another, typically to facilitate a short sale or, in a broader context, can refer to a loan collateralized by marketable securities.
A 'window' can refer to various contexts, including a time-limited opportunity, a Federal Reserve Bank's lending facility, a brokerage firm's cashier department, or a portion of a computer display screen.
