Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

One-Stop Shop

What it is:

A one-stop shop is a single location where all of the needed services for a particular activity are provided.

How it works (Example):

One-stop shopping is a popular concept for packaging products and service oriented businesses. In the financial sector, for example, commercial lending and mortgage brokerages offer one-stop shops. The marketing, origination, underwriting, inspection, appraisal, documentation, settlement, escrow management, and servicing are all handled under a single entity for the client.  Real estate companies often set up one-stop shop operations to handle brokerage and property management services, along with all of the lending and service activities needed to service real estate buyers and sellers.

Why it Matters:

One-stop shops are convenient for buyers and sellers.  However, the one-stop shop can sometimes hide the true costs of each service and then limit the competition for the lowest cost provider.  In addition, having all of the function in a single "shop", even when certain services such as inspection and appraisal are required by regulation to be contracted out, may pose a conflict of interest between the clients and the one-stop shop operator.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...