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The term house stock usually refers to a stock that the management of a brokerage firm has instructed all brokers working for it to promote. The brokerage firm or its owners might be receiving an undisclosed profit from the sale of the house stock.
Generally, if you could look at the stock holdings of all the clients of a boiler room brokerage, almost all clients would hold the set of house stocks.
A house stock differs from a penny stock in that its price can be in the normal price range of a large cap stock.
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