Broker

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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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BREAKING DOWN 'Broker'

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.

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RELATED FAQS
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    An insurance broker makes money off commissions from selling insurance to individuals or businesses. Most commissions are ... Read Full Answer >>
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    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 >>
  3. 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 >>
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    Many people unfamiliar with the real estate industry use the terms real estate agent, broker and realtor interchangeably. ... Read Full Answer >>
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    Real estate agents can pay referral fees to licensed persons. Most state laws prohibit the paying of referral fees to unlicensed ... Read Full Answer >>
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