A bucket shop is an illegal brokerage firm, whose salespeople pose as legitimate brokers and attempt to sell you securities.
Typically, a bucket shop broker doesn't actually purchase the securities you agree to buy and that you pay for. Rather the con artists pocket your money and move on, disappearing before you realize you have been scammed.
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- churning, Discretionary account, Futures Commission Merchant (FCM), Introducing broker (IB), Margin Account, Margin call, Piggyback, Rehypothecation
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