DEFINITION of 'Broker'

1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.

2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

3. A licensed real estate professional who typically represents the seller of a property. A broker's duties may include: determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.


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Traditionally, only the wealthy could afford a broker and access the stock market. The internet triggered an explosion of discount brokers, which allow investors to trade at a lower cost, but don't provide personalized advice. Because of discount brokers, almost anybody can afford to invest in the market.

  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Prime Of Prime - PoP

    A brokerage that provides service to traders (especially Forex ...
  3. Workable Indication

    A nominal quote in the municipal bond market at which price a ...
  4. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  5. Street Name

    When securities are held in the name of a broker or other nominee, ...
  6. Discount Broker

    A stockbroker who carries out buy and sell orders at a reduced ...
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  1. Are stock accounts escheatable?

    Many states consider stock accounts to be escheatable property. After stock accounts have posted no activity, typically at ... Read Full Answer >>
  2. How does an insurance broker make money?

    An insurance broker makes money off commissions from selling insurance to individuals or businesses. Most commissions are ... Read Full Answer >>
  3. When is a share purchase marked as 'settled' by a brokerage?

    The T+3 rule governs the settlement of stock share purchases. Per the rule, set by the Uniform Practice Code, purchases of ... Read Full Answer >>
  4. What is Bernard Baruch's most lasting legacy?

    Although a wealthy financier and broker on Wall Street, Bernard Baruch's most lasting legacy is that of a public servant ... Read Full Answer >>
  5. What are the differences among a real estate agent, a broker and a realtor?

    Many people unfamiliar with the real estate industry use the terms real estate agent, broker and realtor interchangeably. ... Read Full Answer >>
  6. Can real estate agents give referral fees?

    Real estate agents can pay referral fees to licensed persons. Most state laws prohibit the paying of referral fees to unlicensed ... Read Full Answer >>
  7. What is the difference between a broker and a market maker?

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