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:
“The glance is natural magic. The mysterious communication established across a house between two entire strangers, moves all the springs of wonder. The communication by the glance is in the greatest part not subject to the control of the will. It is the bodily symbol of identity with nature. We look into the eyes to know if this other form is another self, and the eyes will not lie, but make a faithful confession what inhabitant is there.”
—Ralph Waldo Emerson (1803–1882)
“I’d rather I were dead and gone,
And my body laid in grave,
Ere a rusty stock o coal-black smith
My maidenhead should have.”
—Unknown. The Twa Magicians (l. 17–20)