Any person, other than a bank, engaged in the business ofbuyingor sellingsecuritieson its own behalf or for others. See:Dealer.A person or, more often, a firm that acts as abrokerfor sometransactionsand adealerfor others. That is, as a broker, he/she conducts transactions on behalf of clients, and, as a dealer, he/shetradeson his/her own account. In practice, most brokerages are in fact broker-dealer firms. Most broker-dealers must register with theSEC.A firm that functions both as a broker by bringing buyers and sellers together and as a dealer by taking positions of its own in selected securities. Many firms that are commonly called

A broker-dealer (B/D) is a license granted by the Securities and Exchange Commission (SEC) that entitles the licensee to buy and sell securities for its clients accounts. The firm may also act as principal, or dealer, trading securities for its own inventory.

Some broker-dealers act in both capacities, depending on the circumstances of the trade or the type of security being traded. For example, your order to purchase a particular security might be filled from the firms inventory.

Thats perfectly legal, though you must be notified that it has occurred. B/Ds range in size from independent one-person offices to large brokerage firms.

Want to thank TFD for its existence?Tell a friend about us, add a link to this page, or visitthe webmasters page for free fun content.

Pleaselog inorregisterto use Flashcards and Bookmarks. You can also log in with

If the uniform fiduciary standard pushes through, we may be looking at an increase in sales of insurance-company-owned

The decline of insurance-owned broker-dealers: conflicts of interest contributed to insurers loosening grip

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.