Broker-Dealer
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| A firm engaged in the business of effecting securities and other transactions for the accounts of others. They are required to be registered with the SEC and the NASD. | ||
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Additional Comments:
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.
Although many broker-dealers are "independent" firms solely involved in broker-dealer services, many others are business units or subsidiaries of commercial banks, investment banks or investment companies. |
Related Terms: | ||
Brokerage Fees Whether you buy (and sell) funds or individual securities, the broker you use to execute your ... Broker An individual or firm that charges a fee or commission for executing buy and sell orders ... Good Till Cancelled (GTC) - A GTC order authorizes the broker to buy or sell a position at a ... | ||
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