John...
House positions should be used only as a guideline and/or an indicator as to which brokerage firms are selling shares on behalf of large/mutliple shareholders and which firms are accumulating shares on behalf of a multitude of clients, several insiders or institutions ....
A primary indication of firms selling on behalf of large shareholders is the indication that they purchase a lot less than than they sell...
For instance...
This month Thompson Kernaghan sold 609,075 shares while they only purchased 14,000 on behalf of clients...Obviously the rest of the TK brokers don't want to place their clients into this play as they know that one or more of it's brokers have a large amount of shares to sell...
An indication of when TK may be finished unloading is, if and when, other broker's in that firm begin to purchase...
The same applies to Global Securities... They have sold 439,683 while the firm has only purchased 15,000 on behalf of clients...
Now on the other hand, it's obvious that brokers working for Dominion Securities like this play, as they have purchased 1,331,668 shares and only sold 478,383 for a positive net House Position of 853,285 shares...Now that can be on behalf of a multiple of clients, single clients, insider's and or institutions... There is no way, we as the general public/investor can determine who is buying....
A clearer picture is obtained when one takes two or three months of House Positions into consideration...
>>>Brokers do trade for their own profit ?
Yes they do, but 99% of the time not on behalf of the firm...It's more for their personal accounts...
Sometimes brokerage firms will finance company's on behalf of institutions and insiders and they will be paid in the form of shares rather than cash, rarely do they get into it themselves unless it's an exceptional situation... These outfits don't like to tie up large sums of capital for long periods of time...
Keep in mind these companies get paid a commission for the purchase and or sale of shares... If they aren't buying or selling on behalf of clients they aren't generating any cash flow...No cash flow, no pay cheques, no brokers, no entry into office....
But then again, what the 'ell do I know...
...ed
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