principal basis definition

principal basis

Sale of securities through one or more dealers who (at least initially) buy a block of them for their own portfolios, thus incurring the market risk (systemic risk) as principals. The dealer(s) then may sell the securities their customers at a markup or markdown, as the case may be. See also agency basis.

principal basis is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.

principal basis appears in the definition of the following term: valuation

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