Broker-dealer

Encyclopedia : B : BR : BRO : Broker-dealer

A broker-dealer is a company that trades in securities for customers as well as for its own account. In the United States, a broker-dealer has to be registered with the U.S. Securities and Exchange Commission. When executing trade orders on behalf of a customer, the institution is said to be acting as a broker. When executing trades for its own account, the institution is said to be acting as a dealer. Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of the firm's holdings.

From Wikipedia, the Free Encyclopedia. Original article here. Support Wikipedia by contributing or donating.
All text is available under the terms of the GNU Free Documentation License See Wikipedia Copyrights for details.