Securities firms engage in proprietary trading, which means that they serve as an intermediary by trading shares of stock requested by proprietorships.

Question

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Proprietary trading refers to a financial firm or commercial bank investing for direct market gain rather than earning commission dollars by trading on behalf of clients. It means the company trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, not the money of its clients.

Securities Firms Engage in Proprietary Trading, Which Means That They