What is house stock?

This is a stock that all brokers who work in a particular firm have been instructed to promote.

Where have you heard about house stock?

You might not have done, unless you've got experience in dealing with or working for brokerage firms. They're common practice in these organisations, which make their money by acting as the middlemen between buyers and sellers of securities.

What you need to know about house stock.

Brokerage firms each have a clientele of investors they serve, who trade public stocks and other securities through its stockbrokers. The instruction to promote a particular house stock will come from the managers of the brokerage firm, who may be receiving an undisclosed profit from its sale. The stock will be kept in that firm's inventory, and it may either keep the house stock for clients or trade them in its capacity as a market maker.

Find out more about house stock.

See our guide to stock markets to learn more about how the buying and selling of stocks works.