See: Principal.
A pizza delivery person drives around with pizzas in his car all day. Most of those pizzas are for other people. But, every so often, the pizza delivery person buys a pizza for himself and drives it home.
Take that concept to Wall Street, and you have the definition of principal orders.
Brokers transact business for their clients. You call your broker, looking to buy 100 shares of AAPL. They take care of the rest...all the paperwork, the execution of the order, the custody of the stock, etc. Meanwhile, brokers also sometimes conduct business on their own accounts. So they aren't buying stock for their clients; they're buying it for themselves...making a bet on their own behalf, and trying to make money off the market.
These orders are known as principal orders. The brokers represent the principal actors for the transaction, as opposed to most situations, when they act as an agent for someone else. There are regulations regarding how the principal orders take place, to protect against activities like insider trading.
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Finance: What is Acting As A Principal?36 Views
Finance what is acting as a principal Yeah unless you
want to get sent to detention we don't recommend doing
this on halloween Okay this one's really about acting as
a principal How versus acting as an agent princip al
equals owner agent equals a commission taker principal The end
result like how well or poorly and investment performs determines
success Agent whether or not a commission happens determines success
Principal The party responsible for a given system or project
or event being successful agent the party responsible for getting
people teo just spend money on that event Principal developer
The person risking capital to make say a commercial building
Make money for investors Agent the person who sold office
units in that commercial building Principal the portfolio manager the
buy side player region the stockbroker the sell side player
and well that's it in our next video will cover
acting as a shakespearean prince also challenging but the pay 00:01:23.426 --> [endTime] isn't is good
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