Corporation property casualty liquidating distribution


21-Oct-2020 12:24

A boiler room usually has an undisclosed relationship with the company being promoted or undisclosed profit from the sale of the house stock they are promoting.

A boiler room promotes (via telephone calls to brokerage clients or spam email) thinly traded stocks.

In the UK: Stockbrokers act the same in the UK as in the US, except that when trading in a principal capacity with a client, the broker is obliged to inform the client and no commission is charged.Transactions by stockbrokers in the US and UK In the US: When acting as an agent, the stockbroker typically charges the client a flat fee and/or a percentage-based commission for undertaking the trade, and the price quoted the client must be the best price available in the market.When acting as a principal, the trade could be with another market participant or one of the stockbroker's clients.When using a stockbroker for financial guidance, one must be made aware that they do get paid on a commission, based on the stock/mutual fund they sell, and also through Class Distinction/Operating Expense Fees/Services Fees/Shareholder Fees.

Thus, a conflict of interest arises concerning a stockbroker who offers his/her service as a financial planner, because their revenue is generated as a direct result of your investment in the stock/mutual fund that they broker to you.

With the advent of automated stockbroking systems on the Internet the client often has no personal contact with his/her stockbroking firm.