- Bucket Shop
- 1. A fraudulent brokerage firm that uses aggressive telephone sales tactics to sell securities that the brokerage owns and wants to get rid of. The securities they sell are typically poor investment opportunities, and almost always penny stocks.
2. A brokerage that makes trades on a client's behalf and promises a certain price. The brokerage, however, waits until a different price arises and then makes the trade, keeping the difference as profit.
1. Bucket shops are sometimes called the boiler room. The U.S. has laws restricting bucket shop practices by limiting the ability of brokerage houses to create and trade certain types of over-the-counter securities.
2. The second definition for a bucket shop comes from more than 50 years ago, when bucket shops would do trades all day long, throwing the tickets into a bucket. At the end of the day they would decide which accounts to award the winning and losing trades to.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Bucket shop — refers to a particular type of fraudulent business:* Bucket shop (heraldry) * Bucket shop (stock market)The term is used as a pejorative colloquialism to refer to different kinds of businesses, indicating that the speaker believes it is a fraud… … Wikipedia
bucket shop — An unofficial and usually illegal betting operation in which the prices of stocks and commodities are posted and the customers bet on the rise and fall of prices without actually buying stock, commodities, or commodity futures. Bucket shops are… … Law dictionary
Bucket shop — Buck et shop An office or a place where facilities are given for betting small sums on current prices of stocks, petroleum, etc. [Slang, U.S.] [1913 Webster] … The Collaborative International Dictionary of English
bucket shop — n BrE informal a place that sells cheap plane tickets … Dictionary of contemporary English
bucket shop — ► NOUN informal, derogatory 1) an unauthorized office speculating with the funds of unwitting investors. 2) Brit. a travel agency providing cheap air tickets … English terms dictionary
bucket shop — ☆ bucket shop n. 1. a business involved in selling, chiefly by telephone solicitation, that uses high pressure sales tactics, fraudulent claims, etc. 2. Brit. an unlicensed travel agency which sells discounted airline tickets … English World dictionary
bucket shop — An illegal brokerage firm that accepts customer orders but does not attain immediate executions. A bucket shop broker promises the customer a certain price, but waits until a price discrepancy is present and the trade is advantageous to the firm… … Financial and business terms
Bucket Shop — Der englische Begriff Bucket Shop bezieht sich auf eine Anzahl Geschäftsmodelle, die letzten Endes allesamt Betrug sind. Ursprüngliche Bedeutung Vornehmlich in Nordamerika gab es zum Ende des 19. und Anfang des 20. Jahrhunderts eine Art Wettbüro… … Deutsch Wikipedia
bucket shop — noun 1. an unethical or overly aggressive brokerage firm • Hypernyms: ↑brokerage, ↑brokerage firm, ↑securities firm 2. (formerly) a cheap saloon selling liquor by the bucket • Hypernyms: ↑tavern, ↑tap house … Useful english dictionary
bucket shop — UK / US noun [countable] Word forms bucket shop : singular bucket shop plural bucket shops British informal a cheap travel agent … English dictionary