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Related to Broker-dealer: brokerage, Series 7


Any person, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others. See: Dealer.


A person or, more often, a firm that acts as a broker for some transactions and a dealer for others. That is, as a broker, he/she conducts transactions on behalf of clients, and, as a dealer, he/she trades on his/her own account. In practice, most brokerages are in fact broker-dealer firms. Most broker-dealers must register with the SEC.


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 brokers or brokerage firms are actually broker-dealers.


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 firm's inventory.

That's 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.

References in periodicals archive ?
The annual Broker-Dealer of the Year award is based on voting in 15 different categories, including an overall rating that counts for 30% of the total score.
Chief among them is the fact that if a client's bond portfolio is constructed with bonds from a broker-dealer, the client likely will pay more for the bonds because of higher markups attached to such bonds.
Cetera Financial Group's progressive model provides advisors with all the benefits of a large, well-capitalized family of broker-dealer - including award-winning wealth management resources, superior technology and world-class customer service - with the customized fit and personal relationship that is typically found only at smaller firms.
A registered investment adviser has a fiduciary responsibility to work in the client's best interest; the broker has a fiduciary responsibility to the broker-dealer.
When a banking organization conducts securities activities outside the bank, through a subsidiary or an affiliate that is a broker-dealer, it is subject to the jurisdiction of both the banking agencies and the securities regulators.
Pershing's qualitative and quantitative research identified six key transformations that will guide the broker-dealer of the future:
NYSE: ISE), is presently using ISERoute to implement exchange-defined routing logic and transmit orders that access other markets through sponsoring agency broker-dealers.
Jim Crowley, managing director at Pershing LLC, said, "The broker-dealer industry is entering a period of great opportunity, a time when financial advice will be needed more than ever before.
NPH) is a broker-dealer holding company and an affiliate of Lansing, Mich.
NYSE: HIG) and leading independent broker-dealer, has agreed to acquire the assets of Diversified Financial Concepts (DFC).