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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Sharing In Profits/Losses Of Clients

Definition:

An agent can only share in a client's account profits or losses if the agent has been allowed to do so by a principal or if the agent contributed to the account, in which case, the agent can only take part in the profits and losses to the extent that they took part in the account.

These limits and rules ensure that the agent can't help themselves to an account's profits whenever they want.