Business & Finance: What is a Bucketshop?

It Sells What It Does Not Own The many failures of stock brokerage firms in recent years has brought to the fore the old problem of driving the "bucketshops" out of business. Before headway can be made the public must know exactly what a bucketshop is. Legitimate brokerage houses should not, of course, be driven out of existence in prosecuting the bucketshops.

The legitimate brokerage firm acts as an agent for public customers in the purchase and sale of securities. It also obtains credit for such customers, thus enabling them to buy "on...

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