Dealer

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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.

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 ?
Knowing how to analyze and spot a problem from the onset can eliminate a majority of issues within a deal.
According to Whitestone Communications' (New York) annual reference "Who's Buying Whom," the number of deals for publishing, information and training companies in ten categories increased 12% last year, going from 312 deals in 2003 to 349 deals last year.
The terms in a fundamental deal usually lack many downside protection features because demand for the PIPE is high.
Domestic transactions by volume were about 50 per cent of total announced deals in Q2 2011, outnumbering inbound and outbound deal activity.
Announced domestic transactions comprised more than half of all deal volume in 2010, at 54 per cent, followed by outbound deals at 29 per cent and inbound deals at 17 per cent.
The inbound sector saw the lowest deal value activity at 8 per cent.
Despite a decline in the number of deals in the past six quarters, deal value has now increased to its second highest since Q1 2009.
At the start of the process, the fields are fertile with good deals, but each deal done means one less deal available.
Chase Welles of Northwest Atlantic Real Estate Services, LLC won the award for the Most Creative Deal in the Outer Boroughs for the Whole Foods at 3rd Street and 3rd Avenue in Brooklyn.
with deal competition intense, buyout houses are striving to distinguish themselves from the competition as they woo limited partners, court prospective companies and build a track record in niche industries.
Although supposedly sympathetic to the plight of black America, FDR was not about to risk losing either his New Deal or World War II by alienating Southern supporters or moving too far ahead of public opinion.
Seymour said he received the blessings of Lancaster Park and Recreation director Lyle Norton and assistant city manager Dennis Davenport to negotiate such a deal.