Definition of Bucketing

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TeachMeFinance.com - explain Bucketing




historic definition...

Bucketing -- As distinguished from the manner in which a bucket shop operates (see Bucket shop) bucketing of stocks consists in sales by a broker (for his own account and risk) against customers' purchases or purchases by the broker against customers' sales. Such a proceeding if not illegitimate is at least considered irregular. The purpose may be to avoid the employment of money in carrying (holding) stocks, but more often the Durpose of the broker is to speculate against his customers or, in speculative vernacular, to take the other end or other side of the customers' trades. In either case ihe broker wins if his customers lose or he loses if his customers win.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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