Dealer


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Related to Dealer: Broker Dealer, Casino dealer

Dealer

An entity that stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). Individual or firm acting as a principal in a securities transaction. Principals are market makers in securities, and thus trade for their own account and risk. Antithesis of broker. See: Agency.

Dealer

A person or company that trades securities on its own behalf. That is, a dealer is a principal in a transaction; it neither does business on behalf of a client nor facilitates transactions between parties. In the United States, dealers are regulated by the SEC, and must be trading securities as a business. If an individual trades securities privately, that person is said to be a trader and is subject to different regulations. See also: Agent, Broker, Broker-dealer.

dealer

An individual or a firm that buys assets for and sells assets from its own portfolio as opposed to bringing buyers and sellers together. In practice, many firms operate as broker-dealers and perform both services depending on the market conditions and on the size, type, and security involved in a particular transaction. Dealers are sometimes able to offer investors better prices, but they may tend to make recommendations based on their own ownership positions. Compare broker.

Dealer.

Dealers, or principals, buy and sell securities for their own accounts, adding liquidity to the marketplace and seeking to profit from the spread between the prices at which they buy and sell.

In the over-the-counter market, in most cases, it is dealers -- also called market makers -- who provide the bid and ask quotes you see when you look up the price of a security.

Those dealers are willing to commit their capital to specific securities and are ready to trade the securities at the quoted prices.

dealer

see TRADER.

dealer

In tax law,persons who buy and sell property for their own account,whether that property consists of silver spoons,trading cards,or real estate.Investors want to avoid dealer status because:

• Gains on sales are treated as ordinary income rather than the more favorably treated capital gains, no matter how long you hold a particular piece of property.

• Dealers have to pay self-employment taxes on their income.

• Dealers cannot take advantage of installment sales provisions that allow others to pay taxes over time, as they receive installment payments from the purchaser. Dealers must pay income taxes on the entire profit, even if they receive payments over many years.

Dealer

A person or firm that regularly buys and sells property. A person is classified as a dealer if at the time of the sale, that person held the property primarily for sale to customers in the ordinary course of business. Gains from the sale of such property are ordinary gains not capital gains.
References in periodicals archive ?
Although the proposed regulations do not discuss a borrowing affiliate contributing to the capital of the investing affiliate (rather than lending), H Enterprises would apply to link the borrowed funds with the dealer affiliate's use of the funds.
Of the 83,000 retail firearms dealers in America, ATF shuts down only about 25 annually.
Based on dealer feedback, Mycogen and Adayana made several major updates in the VPT for the 2005-06 selling season.
Invite dealer to have exhibit table at local association events and workshops.
NADA, meanwhile, is preparing to launch a Web site in June featuring price data and dealer links.
By comparison, Chrysler has 146 black-owned dealerships and Ford has 243; see "Black Auto Dealers Are Spinning Their Wheels," Newspoints, this issue.
Another dealer is JR East, which runs what used to be the national railroad in the Tokyo area.
The pressure on both manufacturer and dealer is to address a marketplace that is clearly over-dealered for today's competitive environment, which is squeezing margins.
Dealer Services Corporation has established 58 full service locations providing national coverage.
Payment for replacement vehicles can occur in two ways: the taxpayer (1) orders the QI to transfer funds via the Automated Clearing House to the dealer or (2) writes a check to the dealer.
Starting a company from scratch allowed McCormick USA to do things right, such as focusing on the critical elements of dealer recruitment and support.