Prime Brokerage

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What is a 'Prime Brokerage'

A prime brokerage is a special group of services that many brokerages give to special clients. The services provided under prime brokering are securities lending, leveraged trade executions, and cash management, among other things. Prime brokerage services are provided by most of the large brokers, such as Goldman Sachs, Paine Webber, and Morgan Stanley Dean Witter.

BREAKING DOWN 'Prime Brokerage'

Hedge funds were what started the prime brokerage option. Hedge funds place large trades and need special attention from brokerages.

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RELATED FAQS
  1. How can an investor profit from the increase in popularity of discount brokerages?

    Find out how investors benefit when brokerages compete with each other, and how discount brokerages are changing the market ... Read Answer >>
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