dealer (redirected from Dealerships)

Dealer

1. An individual or firm willing to buy or sell securities for their own account.

2. One who purchases goods or services for resale to consumers.

Notes:

A dealer differs from an agent in that a dealer acts as a principal in a transaction. That is, a dealer takes ownership of assets and is exposed to inventory risk, while an agent only facilitates a transaction on behalf of a client.

See also: Ask Price, Bid Price, Broker, Broker-Dealer, Principal

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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.

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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.