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
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary