Home > Glossary > Markup

Meaning / Definition of

Markup

Categories: Investing and Trading, Brokerages, Business and Management,

When you buy securities from a broker-dealer or market maker, you pay a markup. The markup is either a percentage of the selling price or a flat fee, over and above the amount it cost the broker-dealer to purchase the security. The amount of this markup, or spread, is the broker-dealer's profit and depends in part on the demand for that security or others like it. For example, if investors are buying up certain types of bonds, a broker-dealer may increase the markup for bonds in that category. You might say that the broker-dealer acquires the security at wholesale price and sells it to you at retail price. The difference is the markup. If the markup doesn't appear on the confirmation statement, you can ask the broker-dealer about the markup amount. Or, you can compare the prices that different broker-dealers quote for the same security or the price being quoted for the security on the Internet. The differences in price generally reflect the differences in markups.

Featured term of the day

Definition / Meaning of

Office Of Compliance Inspections And Examinations (OCIE)

Categories: Estate Planning, Brokerages,

The Office of Compliance Inspections and Examinations ("OCIE") protects investors through administering the SEC's nationwide examination and inspection program. Examiners in Washington DC and in the Commission's 11 regional offices conduct examinations of the nation's registered entities, including broker-dealers, transfer agents, investment advisers, investment companies, the national securities exchanges, clearing agencies, the nationally recognized statistical rating organizations ("NRSRO"s), SROs such as the financial industry regulatory authority ("FINRA") and the municipal securities rulemaking board, and the public company accounting oversight board ("PCAOB"). OCIE's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy. The examination program plays a critical role in encouraging compliance within the securities industry, which in turn also helps to protect investors and the securities market(s) generally.

Most popular terms

1. Motor Vehicle
2. Anniversary Rating Date
3. FTSE
4. Call Option
5. Hand
6. Continuous Net Settlement
7. MCS-90 Endorsement
8. Cash Forward Contract
9. Additional Insured
10. Mortgage (mortgagee) Clause

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital