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Finance: What is the Fast Market Rule?
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What is the Fast Market Rule? The fast market rule is something that is used in the U.K. to keep the market under control when any sort of crash ha...

Finance: What is the Dow Jones Industrial Average?
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What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

Finance: What is Arbitrage?
22228 Views

What is Arbitrage? Arbitrage is a trading strategy used to make risk-free money. The investor buys a security in one market and sells it in another...

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Finance: What is an Agency Cross Transaction/Trade? 4 Views


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What is an Agency Cross Transaction/Trade? An agency cross trade happens when the advisor is the broker for the clients on both sides of a trade. Advisors have to give their clients warning if they plan to engage in this type of trading activity, as he is the one doing the buying and selling in the transaction.

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Transcript

00:00

finance a la shmoop what is an agency cross transaction or cross trade and no

00:08

this has nothing to do with Jesus - an agency cross transaction arises when two [Agency cross transaction definition on 100 dollar bill]

00:14

clients want to trade in the same security within the same brokerage or

00:18

agency think about it like a home sale where the listing agent and the buyer's

00:23

agent both work for the same brokerage well in this case it's all about proper

00:27

disclosure it has to be made to both sides as to what's going on..why is this

00:32

such a big deal well because there isn't another set of eyes through a [Man peers through a curtain]

00:36

competitive agency looking in on this deal to be sure that fair market

00:40

practices are being applied and you know fair prices are being paid and this kind

00:45

of insider dealing happened a lot before the 1940 investment advisors Act was [Men shaking hands]

00:50

brought into place by the SEC which stipulated all kinds of rules and

00:54

regulations to help you know the unfavored little guy not get totally [Screw and shadow of drill appears]

00:59

screwed

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