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Proprietary Trading

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Proprietary Trading
When a firm trades for direct gain instead of Commission dollars. Essentially, the firm has decided to profit from the market rather than commissions from processing trades.
    
Proprietary trading is a term used in investment banking to describe when the firm's traders actively trade stocks, bonds, options, commodities, or other items with its own money as opposed to its customers' money, so as to make a profit for the firm. Although investment banks are usually defined as businesses which assist other business in raising money in the capital markets (by selling stocks or bonds), in fact most are more likely to be involved in a scenario where a customer wants to sell a large amount of stock, which if sold through a stock Broker couldn't be sold all at once and could possibly Trigger a decline in the value due to flooding the market.
Posted by  Privatebanking.com
 
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