Series 24: Interpositioning

Taken from our Series 24 Online Guide

Interpositioning

Interpositioning is the practice of inserting a third party between a broker-dealer and the best available price in the market, when it results in a higher price to the customer than would otherwise have been necessary. For example, suppose a broker-dealer passes a customer order to another broker-dealer to purchase the security from the market. Each broker-dealer charges a com

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