five percent rule


Regulation issued by the National Association of Securities Dealers (NASD) that requires registered broker dealers to use ethical and fair practices when determining commission charges and spread creations. Brokers are permitted an increase or decrease of 5%, but must do so with proper and legal justification.

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
five hundred dollar rule Five-Year Plan