A broker is a person or firm who arranges transactions between a buyer and a seller 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 Agent may refer to: Espionage, investigation, and law *, spies or intelligence officers * Law of agency, laws involving a person authorized to act on behalf of another ** Agent of record, a person with a contractual agreement with an insuranc ...

—one who acts on behalf of a principal party in a deal.

Definition

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. 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. Some brokers, known as discount brokers, charge smaller commission, sometimes in exchange for offering less advice or services than full service brokerage firms. A broker-dealer is a broker that transacts for its own account, in addition to facilitating transactions for clients. 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

The 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)".

Types of brokers

* Automobile broker * Broker-dealer * Business broker * Shipping agency *

Auto transport broker An auto transport broker is a type of cargo broker that specializes in the shipping and transportation of vehicles. Most vehicles shipped in the U.S. are cars and trucks, but many brokers handle boats, RVs, motorcycles and other types of vehicle ...

* Commodity broker *

Corredor Público A Corredor Público is a legal professional in Mexico with specific functions in the field of commerce. The main purpose of a Corredor Publico is to broker transactions between merchants. The position was redefined via legislation on December ...

* 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 An office broker is a more general term for a serviced office broker. The office broker company/ individual arranges transactions between a company or individual interested in renting office space and a business centre/ office space owner. Office ...

Yacht broker A yacht broker is a specialist who serves yacht or boat sellers and/or buyers as a representative for the sale or purchase of a yacht or boat. The yacht broker is paid an agreed commission by the seller to market the yacht for sale, field interest ...

References

External links

* {{Authority control Financial services occupations

Definition

Etymology

Types of brokers

References

Further reading

External links