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A bucket shop is an operation where illegal trading and related activities are performed.
After a recent series of questionable transactions and client complaints, the prevailing opinion was that Brummel Investments has turned into a bucket shop.
Historically, bucket shops ran bets on the performance of securities and were most prevalent around the turn of the 19th and 20th centuries. Eventually, these were eliminated through legislative measures. Today, the term may refer to brokerages which conduct unlawful and/or unethical operations. One such operation is known as bucketing where the broker performs a client’s trade at a price higher than that agreed with the client, thereby pocketing the difference. This is an example of a breach of fiduciary duty. A related but distinct operation is called a boiler room, which refers to a call center pushing clients to invest in high-risk assets, such as penny stocks.
Bucket shop je provoz, ve kterém se provádějí nelegální obchodní operace a související činnosti.
Po nedávné sérii pochybných transakcí a stížností klientů panuje názor, že se firma Brummel Investments změnila na bucket shop.
Historicky, bucket shops provozovaly sázky na výkon cenných papírů a byly nejrozšířenější okolo přelomu 19. a 20. Století. Nakonec byly eliminovány legislativními prostředky. Dnes může tento termín označovat makléřské společnosti, které provádějí nezákonné a/nebo neetické operace. Jedna taková operace se nazývá bucketing, při které makléř provede klientův obchod za cenu, která je vyšší, než byla dohodnuta s klientem, a tak shrábne rozdíl. Toto je příklad porušení fiduciární povinnosti. Související, ale odlišný provoz se nazývá boiler room, což označuje call centrum, které tlačí klienty k investicím do vysoce rizikových aktiv, například penny stocks.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
