Bonds Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time. In this type of underwriting, the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decrease before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss. Broker A securities firm or a registered individual affiliated with one.
Brokers are the link between investors and the stock market.
A market in which stock prices are rising. If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities at the current market price of the stock and charge the delivering broker the cost difference of such a purchase. An option contract giving the holder the right to purchase a specific underlying interest at a specified price during a predetermined period of time. The designated central clearing corporation for options and futures trading on the Montreal stock exchanges. A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash.