A broker is a person or firm who arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal.[1]
A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate or stock broker who facilitates the sale of a property.[1]
Brokers can furnish market research and market data. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perfect match. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.[1]
Some brokers, known as discount brokers, charge smaller commission, sometimes in exchange for offering less advice or services than full service brokerage firms.[2]
A broker-dealer is a broker that transacts for its own account, in addition to facilitating transactions for clients.[3]
The word "broker" derives from Old Frenchbroceur "small trader", of uncertain origin, but possibly from Old French brocheor meaning "wine retailer", which comes from the verb brochier, or "to broach (a keg)".[4]
Ronald S. Burt. 2004. "Structural Holes and Good Ideas". American Journal of Sociology, Vol. 110, No. 2, pp. 349–399
External linksEdit
Media related to Brokers at Wikimedia Commons
October 23, 2023
broker, other, uses, disambiguation, broker, person, firm, arranges, transactions, between, buyer, seller, this, done, commission, when, deal, executed, broker, also, acts, seller, buyer, becomes, principal, party, deal, neither, role, should, confused, with, . For other uses see Broker disambiguation A broker is a person or firm who arranges transactions between a buyer and a seller This may be done for a commission when the deal is executed A broker who also acts as a seller or as a buyer becomes a principal party to the deal Neither role should be confused with that of an agent one who acts on behalf of a principal party in a deal 1 Brokers on the floor of the New York Stock Exchange 1908 Contents 1 Definition 2 Etymology 3 Types of brokers 4 References 5 Further reading 6 External linksDefinition EditA broker is an independent party whose services are used extensively in some industries A broker s prime responsibility is to bring sellers and buyers together and thus a broker is the third person facilitator between a buyer and a seller An example would be a real estate or stock broker who facilitates the sale of a property 1 Brokers can furnish market research and market data Brokers may represent either the seller or the buyer but generally not both at the same time Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers They then screen these potential buyers or sellers for the perfect match An individual producer on the other hand especially one new in the market probably will not have the same access to customers as a broker Another benefit of using a broker is cost they might be cheaper in smaller markets with smaller accounts or with a limited line of products 1 Some brokers known as discount brokers charge smaller commission sometimes in exchange for offering less advice or services than full service brokerage firms 2 A broker dealer is a broker that transacts for its own account in addition to facilitating transactions for clients 3 Brokerage firms are generally subject to regulations based on the type of brokerage and jurisdictions in which they operate Examples of brokerage firm regulatory agencies include the U S Securities and Exchange Commission and the Financial Industry Regulatory Authority FINRA which regulate stockbrokers in the United States Etymology EditThe word broker derives from Old French broceur small trader of uncertain origin but possibly from Old French brocheor meaning wine retailer which comes from the verb brochier or to broach a keg 4 Types of brokers EditAutomobile broker Broker dealer Business broker Shipping agency Auto transport broker Commodity broker Corredor Publico Customs broker Freight broker Information broker data broker Insurance broker Intellectual property broker Joint venture broker List broker Matchmaking Message broker Mortgage broker Pawnbroker Power broker term Prime brokerage Real estate broker Shipbroking Sponsorship broker Stockbroker Office broker Yacht brokerReferences Edit a b c Spiro Rosann L Stanton William J Rich Gregory A 2003 Management of a Sales Force 12th ed McGraw Hill Irwin ISBN 9780256020465 What is a Discount Broker Investopedia March 5 2019 JOHNSTON KEVIN B February 23 2019 Top 15 Broker Dealer Firms in 2018 Investopedia Harper Douglas broker Online Etymology Dictionary Retrieved 2010 04 10 Further reading EditRonald S Burt 2004 Structural Holes and Good Ideas American Journal of Sociology Vol 110 No 2 pp 349 399External links Edit nbsp Media related to Brokers at Wikimedia Commons Retrieved from https en wikipedia org w index php title Broker amp oldid 1171933651, wikipedia, wiki, book, books, library,
