primary dealer
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Primary dealer
Usually refers to the select list of securities firms that are authorized to deal in new issues of government bonds.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Primary Dealer
A firm to and from which the New York Federal Reserve directly sells and buys Treasury securities. That is, primary dealers help the Federal Reserve control the money supply by underwriting Treasury securities and placing them with investors. Primary dealers tend to be well-respected and well-known financial institutions. Merrill Lynch and Citigroup are examples of primary dealers.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
primary dealer
A government securities firm to which the New York Federal Reserve Bank sells directly and from which it buys directly in an attempt to control the money supply. Compare reporting dealers. See also open-market operations.
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.