Market Participants

Broker-Dealer

Definition

What is Broker-Dealer?

A firm that acts as an agent for clients and as a principal in its own trades.

Example in practice

The broker-dealer executes a client order and also makes markets in bonds.

Keep learning

A person or firm that executes securities transactions for clients.

A person or firm that buys and sells securities for its own account.

A licensed intermediary that buys and sells exchange-traded securities for clients.

The highest price a buyer is currently willing to pay for a security.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.