Proceeds Sale

Proceeds Sale - A proceeds sale: A securities transaction, made by members of the NASD, that uses any funds from the sale of securities - the funds are reinvested in other securities. Simply said: You sell securities and with the earnings of this trade you buy new (other) securities. Money is in this way re-invested in new stock. These proceed sales are considered transactions by the National Association of Securities Dealers (NASD). In 2007 the NASD has formed the Financial Industry Regulatory Authority (Finra). Members using proceed sale transactions must abide the 5% guideline. This guideline prevents commission or markups exceeding this percentage.