The term house stock usually refers to a stock that the management of a brokerage firm has instructed all brokers working for it to promote. The brokerage firm or its owners might be receiving an undisclosed profit from the sale of the house stock.
Generally, if you could look at the stock holdings of all the clients of a boiler room brokerage, almost all clients would hold the set of house stocks.
A house stock differs from a penny stock in that its price can be in the normal price range of a large cap stock.
Famous quotes containing the words house and/or stock:
“Go out of the house to see the moon, and ‘t is mere tinsel; it will not please as when its light shines upon your necessary journey. The beauty that shimmers in the yellow afternoons of October, who could ever clutch it? Go forth to find it, and it is gone: ‘t is only a mirage as you look from the windows of diligence.”
—Ralph Waldo Emerson (1803–1882)
“In the case of our main stock of well-worn predicates, I submit that the judgment of projectibility has derived from the habitual projection, rather than the habitual projection from the judgment of projectibility. The reason why only the right predicates happen so luckily to have become well entrenched is just that the well entrenched predicates have thereby become the right ones.”
—Nelson Goodman (b. 1906)