Investopedia

Brokered Market

Dictionary Says

Definition of 'Brokered Market'

A marketplace where buyers and sellers are brought together by agents or intermediaries to facilitate price discovery and transaction execution. Brokered markets include all exchanges where listed instruments are traded, as well as markets for non-listed assets such as real estate. The use of brokers as intermediaries between buyers and sellers aids market efficiency by fostering liquidity, reducing bid-ask spreads and boosting transaction volumes.

Investopedia Says

Investopedia explains 'Brokered Market'

Brokered markets are the norm for most transactions, which may span the range from an investor selling 100 shares of a blue chip to a billionaire who wishes to buy a factory in a foreign country. In the former case, either the investor may sell his or her shares through a broker at a full-service brokerage, or online through a discount brokerage; a brokered market is used in either case, since the trade will be executed on a stock exchange. In the latter case, the broker would most likely be a specialist with in-depth knowledge of the country and the assets for sale therein.

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