Posted in Finance, Accounting and Economics Terms, Total Reads: 569
Definition: Give Up
This is basically practiced in securities trading market. This happens when a broker executes the trade on behalf of another broker as if the main broker has actually executed the trade. The reason behind the main broker is not executing the trade is maybe he is too busy to handle other clients and hence askes another broker to get the job done by him. But the execution details will be recorded in the books to whom the client belongs not the executing broker. So the broker to whom the client belongs pockets the commission and the executing broker get nothing.
For Example, Broker A receives a buy order from Client X but he is too busy with another client Y and hence do not have time to place the order. So he calls one of his friend broker B (Who is not as busy as him at that point of time) and asks him to do the job for him/her. Broker B agrees and he placed the order and after the order is matched he buys the specified amount from say Broker C. Though Broker B has done the job but he has to give up the record as if Broker A has done it. So the transaction will be recorder between broker A & broker C though Broker B has actually executed the trade.