Understanding House Stock: Definition & Brokerage Strategies

House stock is the term that is used for the stock that a brokerage is focused on promoting and keep in inventory. The leadership of the firm may instruct the employed brokers to try to encourage clients to invest in that particular stock or they may trade them on the market.

The brokers who deal specifically with house stock will always be prepared with a set bidding price to purchase the stock and have a price set to sell the stock on the market. By focusing on the market performance of that particular asset, the company is able to profit from the buy and sell cycle of trade.