A firm may decided to in-house such activities as accounting, payroll or tech support. While it is common for some companies to outsource those divisions, a firm may maintain flexibility in those operations by keeping them in-house.
When dealing with customers, a firm may try to keep the entire transaction in-house. For example, in-house financing is a common practice in certain industries, using the firm's own resources to extend the customer's credit. For a brokerage, the firm may try to match a client's order with another customer, creating an in-house transaction. This allows the firm to benefit from both the buy- and sell-side commissions.
Investment dictionary. Academic. 2012.
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