Stuffing

Stuffing
The act of selling undesirable securities from the broker-dealer's account to client accounts. Stuffing allows broker-dealer firms to avoid taking losses on securities that are expected to decline in value. Instead, client accounts take the losses. Stuffing can also be used as a means to raise cash quickly when securities are relatively illiquid and difficult to sell in the market.

While stuffing is widely regarded as unethical, it can be difficult to prove whether such transactions constitute fraud. Often, broker-dealers are given the power to buy and sell without client consent for "discretionary" accounts. Furthermore, the legal standard for broker-dealers buying securities for these accounts is "suitability," which can be broadly interpreted. Since discretionary accounts provide so much power to broker-dealers, many financial advisors suggest that customers insist on providing consent for all transactions in their accounts.


Investment dictionary. . 2012.

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  • Stuffing — Stuff ing, n. 1. That which is used for filling anything; as, the stuffing of a saddle or cushion. [1913 Webster] 2. (Cookery) Any seasoning preparation used to stuff meat; especially, a composition of bread, condiments, spices, etc.; forcemeat;… …   The Collaborative International Dictionary of English

  • stuffing — ► NOUN 1) a mixture used to stuff poultry or meat before cooking. 2) padding used to stuff cushions, furniture, or soft toys. ● knock (or take) the stuffing out of Cf. ↑take the stuffing out of …   English terms dictionary

  • stuffing — [stuf′iŋ] n. 1. the action of filling, packing, or gorging 2. something used to fill or stuff; specif., a) soft, springy material used as padding in cushions, upholstered furniture, etc. b) a seasoned mixture for stuffing fowl, roasts, etc …   English World dictionary

  • Stuffing — In cooking, stuffing or dressing (specifically for poultry) is a substance used to fill a cavity in another food item. Many foods are stuffed, including meats, vegetables, and fruits.HistoryIt is not known when stuffings were first used. The… …   Wikipedia

  • stuffing — [[t]stʌ̱fɪŋ[/t]] stuffings 1) N MASS Stuffing is a mixture of food that is put inside a bird such as a chicken, or a vegetable such as a pepper, before it is cooked. Chestnuts can be used at Christmas time, as a stuffing for turkey, guinea fowl… …   English dictionary

  • stuffing — noun 1) the stuffing is coming out of the armchair Syn: padding, wadding, filling, upholstery, packing, filler 2) sage and onion stuffing Syn: dressing, filling, forcemeat, salpicon • …   Thesaurus of popular words

  • Stuffing — Stuff Stuff, v. t. [imp. & p. p. {Stuffed}; p. pr. & vb. n. {Stuffing}.] [OE. stoffen; cf. OF. estoffer, F. [ e]toffer, to put stuff in, to stuff, to line, also, OF. estouffer to stifle, F. [ e]touffer; both perhaps of Teutonic origin, and akin… …   The Collaborative International Dictionary of English

  • stuffing — stuff|ing [ˈstʌfıŋ] n [U] 1.) a mixture of bread or rice, onion etc that you put inside a chicken, pepper etc before cooking it ▪ sage and onion stuffing 2.) soft material that is used to fill something such as a ↑cushion →knock the stuffing out… …   Dictionary of contemporary English

  • stuffing — noun (U) 1 a mixture of bread, onion, egg and herbs that you put inside meat before cooking it; dressing (2) AmE: sage and onion stuffing 2 soft material that is used to fill something such as a cushion see also: knock the stuffing out of sb… …   Longman dictionary of contemporary English

  • stuffing — n. 1 padding used to stuff cushions etc. 2 a mixture used to stuff poultry etc., esp. before cooking. Phrases and idioms: knock (or take) the stuffing out of colloq. make feeble or weak; defeat. stuffing box a box packed with material, to allow… …   Useful english dictionary

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