The purchases may either be a lump sum or by accumulating shares. It is an unethical practice that is in violation of NASD rules. The service continuously reports major news developments and financial information. A person who handles investors' orders to buy and sell securities. For this service a commission is usually charged.
Brokers specializing in stocks, bonds, options, or commodities act as an agent.
The rate is usually approximately a point above short-term interest rates such as the federal funds rate. Broker loans are callable on 24-hour notice.