Broker-dealer

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Broker-dealer

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

Broker-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.

broker-dealer

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.

Broker-dealer.

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 ?
Merrill Lynch is today singled out as the best securities house in the City for the quality of its research, narrowly beating Warburg Dillon Read.
The Financial Services Agency and securities houses have been preparing to launch the new system since a relevant law was enacted in June 2004, and will continue to urge shareholders to turn their paper certificates into electronic data so they can continue to carry out their transactions smoothly.
Toyota Motor Corp., the second-largest shareholder in the securities house with a 3.84 percent stake, is expected to agree to the swap deal, sources close to the matter said.
The Financial Services Agency plans to seek law revisions enabling it to issue an order to correct business practices to securities houses that conduct transactions taking advantage of a law's loopholes, government sources said Sunday.
Starting next April, the bank will raise some 150 billion yen by issuing straight bonds on a quarterly basis for an annual total of 600 billion yen, with securities houses underwriting them.
Major securities houses have been refraining from disclosing earnings estimates, saying business results could change substantially depending on economic conditions and the market environment.
The association of 268 securities houses compiled the data based on replies to its questionnaire from 54 member brokerages offering online trading services.
The ''Big Three'' Japanese securities houses were chosen from among 10 bidders for the role, including four foreign brokerages.
Their control of securities houses other than Nomura Securities Co.
It has since floated 82,400 shares which are presently held mainly by securities houses as well as major businesses in the Kansai region surrounding Osaka.
It has issued 82,400 shares which are held mainly by securities houses as well as major businesses in the Kansai region centering on Osaka.
The idea is designed to promote tie-ups between banks and securities houses in Japan, where many people prefer to deposit money with banks instead of making risky but higher-return investments, panel members said.

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