A Brokered Certificate of Deposit (Brokered CD) is a type of CD issued by banks or thrift institutions but bought in bulk by brokerage firms who then resell it to their clients. These CDs often offer higher interest rates compared to those offered directly by banks.
A bucket shop is a derogatory term for a brokerage firm or similar financial entity known for questionable practices and typically lacking membership in established trade organizations.
A niche segment within the advertising industry, focused on the promotion of financial products and services such as mutual fund shares, limited partnership units, and products offered by banks, brokerage firms, and insurance companies.
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization (SRO) and the largest nongovernmental regulator of securities firms in the United States. Created in July 2007 by the consolidation of the National Association of Securities Dealers (NASD) and the member regulation, enforcement, and arbitration functions of the New York Stock Exchange (NYSE).
The Glass-Steagall Act of 1933 is a legislative measure passed by Congress that authorizes deposit insurance and prohibits commercial banks from owning brokerage firms. This act was largely repealed by the Financial Services Modernization Act of 1999.
A homeowner's equity account is a credit line offered by banks and brokerage firms, allowing homeowners to access the equity built up in their homes. This type of account acts as a revolving credit second mortgage.
The Medallion Stamp Program is a securities transfer process approved by the Securities Transfer Association. It enables participating financial institutions to guarantee signatures for the transfer of securities.
Pink Sheets is a daily publication by Pink Sheets, LLC (formerly known as the National Quotation Bureau) that details the bid and asked prices of thousands of over-the-counter (OTC) stocks. Brokerage firms subscribe to the Pink Sheets, named for their color, because they provide current prices and list market makers who trade each stock.
A list of securities singled out for special surveillance by a brokerage firm, exchanges, or self-regulatory organizations to spot irregularities such as excessive trading volume or potential takeover activities.
