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Home > QFINANCE Dictionary > Definition of bucket shop

Definition of

bucket shop

Markets

broker engaging in delayed trades to customer's disadvantage in the United States, a firm of brokers or dealers that accepts customers' orders but does not execute the transactions until it is financially advantageous to the broker, at the customers' expense

Recommended Further Reading (Term count)
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bucket shop - Related Articles

  • Credit Derivatives—The Origins of the Problem

    Best Practice

    “Bucket shops” arose in the late 19th Century. Customers “bought” securities or commodities on these unauthorized exchanges, but, in reality, the bucket shop was simply booking the customer’s order without executing on an exchange. In fact, they were simply throwing the trade ticket in the bucket
    By Eric R. Dinallo

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Definitions of ’bucket shop’ and meaning of ’bucket shop’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’bucket shop’ and other financial terms with our online QFINANCE Financial Dictionary.

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