Bucket shop

Bucket shop,

Definition of Bucket shop:

  1. An unauthorized office for speculating in stocks or currency using the funds of unwitting investors.

  2. A bucket shop is a brokerage firm that engages in unethical business practices. Historically, the term was used to refer to firms that allowed their customers to gamble on stock prices, often using dangerously high levels of leverage.

  3. Usually illegal securities-brokerage outfit that does not strictly follow the prescribed rules in carrying out clients orders, and is unlikely to be a member of the trade association.

  4. Usually legal travel outfit that sells heavily discounted tickets during off-season slumps.

  5. More recently, the term is associated with firms that practice bucketing, which involves profiting from a client's trades without their knowledge.

Synonyms of Bucket shop

Barroom, Boiler room, Boozer, Brokerage, Brokerage house, Brokerage office, Bunco game, Con game, Confidence game, Drinkery, Fall to, Goldbrick, Jump in, Set to, Shell game, Skin game, Stockbrokerage, Thimblerig, Thimblerigging

How to use Bucket shop in a sentence?

  1. Today, bucket shops are associated with so-called bucketing transactions, which involves illegally profiting from clients' trades.
  2. Historically, they would facilitate gambling on stock prices, often encouraging their clients to use dangerous levels of leverage.
  3. A bucket shop is a brokerage firm that engages in unethical business practices.

Meaning of Bucket shop & Bucket shop Definition