Give Up

AAA

DEFINITION of 'Give Up'

A procedure in securities or commodities trading where the executing broker places a trade on behalf of another broker as if he/she actually executed the trade. This is usually done because a broker is too busy to place a trade for a client and asks another broker to place the trade for him/her. On the record books, the trade will not show the executing broker's information, but the broker to whom the client belongs. Thus, the broker of the client and the broker on the other side of the trade will receive the commission, while the executing trader will get nothing. This is a grey area of law governing reimbursement of brokers for services (e.g. research).

INVESTOPEDIA EXPLAINS 'Give Up'

Pay close attention, here's how it works. Broker X gets a buy order from a client but is too busy to place the trade, so he asks Floor Broker Y, who isn't as busy, to place the order for him/her. Broker Y then buys the stock from Broker Z on behalf of Broker X's client. However, although Floor Broker Y places the trade, he must "give up" the transaction and record it as if Broker X placed the trade since the client belongs to him/her.  Thus, the transaction is recorded as if X & Z made the trade, even though Floor Broker Y executed the trade.

RELATED TERMS
  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  4. Two Dollar Broker

    A floor broker who executes orders for other brokers who cannot ...
  5. Front Running

    The unethical practice of a broker trading an equity based on ...
  6. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
RELATED FAQS
  1. When is a share purchase marked as 'settled' by a brokerage?

    The T+3 rule governs the settlement of stock share purchases. Per the rule, set by the Uniform Practice Code, purchases of ... Read Full Answer >>
  2. What financial regulation exist to control the secondary market?

    The secondary market, most commonly referred to as the stock market, is largely built on self-regulating exchanges that also ... Read Full Answer >>
  3. Why is purchasing stocks on margin considered more risky than traditional investing?

    Buying on margin involves borrowing money from a broker to purchase stock. A margin account increases your purchasing power ... Read Full Answer >>
  4. What is the difference between positive correlation and inverse correlation?

    In the field of statistics, positive correlation describes the relationship between two variables which change together, ... Read Full Answer >>
  5. What are my options when I get a margin call?

    The two options available to an investor when he receives a margin call are to deposit additional funds to his trading account ... Read Full Answer >>
  6. How do I sign up for a Series 63 exam as a foreign national if I don’t have a Social ...

    If you need to sign up for a Series 63 examination but don't have a Social Security or CRD (Central Registration Depository) ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  2. Investing Basics

    Explaining Market Value of Equity

    Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time.
  3. Investing Basics

    What is Spread?

    Spread has several slightly different meanings depending on the context. Generally, spread refers to the difference between two comparable measures.
  4. Investing Basics

    What is the Secondary Market?

    The secondary market is where investors purchase securities or assets from other investors, rather than from the issuing companies themselves.
  5. Brokers

    10 Brokers That Pay You To Open An Account

    Open an account with one of these brokers and you will get a bonus. Just be sure it's the right account for your needs.
  6. Brokers

    How Real Estate Agent and Broker Fees Work

    Buying or selling a home? What you need to know about real estate agent and broker fees.
  7. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  8. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  9. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.
  10. Professionals

    How to Choose a Robo-advisor? Follow the Money

    Which of the many robo-advisors will still be around in a decade? Here's an informal look at who might thrive and who might simply survive.

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center