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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 ?
registered broker dealer and a member of the National Association of Securities Dealers, is a subsidiary of ICICI Securities and Finance Company Limited (ICICI Securities, India), which is a wholly owned investment banking subsidiary of ICICI Bank Limited, the largest private sector bank in India with assets of US$20 billion.
Winebrenner Capital Partners LLC, founded in 1999, is a full-service broker dealer and investment banking firm that specializes in raising capital for rapidly growing businesses.
is a registered broker dealer in the United States and a member of the National Association of Securities Dealers.
BSSC also provides clearing, operational and administrative services for registered broker dealers, members of the New York Stock Exchange and/or the NASD who engage in the retail or institutional brokerage business.