Instinet

AAA

DEFINITION of 'Instinet'

A global financial securities company that operates an electronic securities order matching (trading) and information system that allows members (primarily professional traders and investors) to display bids and offer quotes for stocks and to transact between themselves. As a global securities broker, Instinet enables institutional customers to trade securities in global markets.

INVESTOPEDIA EXPLAINS 'Instinet'

Instinet was founded in 1967 as Institutional Networks. It is Wall Street's oldest electronic communications network (ECN), and after it was acquired by Reuters Group in 1987, it and other ECNs evolved into major threats to the established stock exchanges. The company split its ECN and its brokerage business into Inet ECN and Instinet, respectively, in 2003. NASDAQ then acquired Inet ECN in 2005 and Instinet was sold to a private equity firm. In addition to sales trading, Instinet provides front-end technology, algorithmic trading, liquidity sourcing, independent research, commission management and transaction analysis.

RELATED TERMS
  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Trade

    A basic economic concept that involves multiple parties participating ...
  4. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
RELATED FAQS
  1. I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy ... Read Full Answer >>
  2. How does beta measure a stock's market risk?

    Beta is a statistical measure of the volatility of a stock versus the overall market. It's generally used as both a measure ... Read Full Answer >>
  3. How does the risk of investing in the electronics sector compare to the broader market?

    The risk of investing in the electronics sector closely approximates the risk of investing in the broader market. The electronics ... Read Full Answer >>
  4. How do markets account for systematic risk?

    Systematic risks provide markets with an unpleasant quandary. Economists, policy makers, directors, fund managers and investors ... Read Full Answer >>
  5. What stage of the economic cycle is usually the best for an investor to enter the ...

    The best time during the economic cycle for an investor to enter the electronics sector is when he has confidently identified ... Read Full Answer >>
  6. How do S&P 500 futures work?

    S&P 500 futures are a type of capital asset contract that provides a buyer the right to a predetermined selection of ... Read Full Answer >>
Related Articles
  1. Professionals

    Wall Street Writers: A Behind-The-Scenes Career

    Regulators, sales people and clients all look to communications professionals to help them navigate the markets.
  2. Investing Basics

    Why You Should Understand The Stock Market

    Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why.
  3. Options & Futures

    The Kingpin Of Wall Street: J.P. Morgan

    From robber baron to the hero of the Panic of 1907, this man helped shape Wall Street as we know it.
  4. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  5. Options & Futures

    Brokers and Online Trading

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

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  7. Investing Basics

    What is the Coupon?

    In the financial world, “coupon” represents the interest rate on a bond.
  8. Investing Basics

    Explaining the Coupon Rate

    Coupon rate is the stated interest rate on a fixed income security.
  9. Investing Basics

    What is Cyclical Stock?

    A cyclical stock is an equity security whose price is affected by ups and downs in the overall economy.
  10. Investing Basics

    What are Ordinary Shares?

    Ordinary shares are any type of shares that are not preferred and don’t pay any type of predetermined dividend amount.

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