Dealer

Filed Under »
Dictionary Says

Definition of 'Dealer'

1. An individual or firm willing to buy or sell securities for their own account.

2. One who purchases goods or services for resale to consumers.
Investopedia Says

Investopedia explains 'Dealer'

A dealer differs from an agent in that a dealer acts as a principal in a transaction. That is, a dealer takes ownership of assets and is exposed to inventory risk, while an agent only facilitates a transaction on behalf of a client.

Related Definitions

  • Authorized Forex Dealer

    Any type of financial institution that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. Dealing with ...
    Read More »
  • Bid Price

    The price a buyer is willing to pay for a security. This is one part of the bid with the other being the bid size, which details the amount of shares the investor is willing to purchase ...
    Read More »
  • 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 ...
    Read More »
    • Broker-Dealer

      A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction.
      Read More »
    • Dealer Incentive

      A corporate sales strategy in which the price a dealer has to pay a manufacturer for a particular product is reduced, allowing the dealer to make a higher profit or to reduce the price ...
      Read More »
    • Payment For Order Flow

      The compensation and benefit a brokerage receives by directing orders to different parties to be executed. The brokerage firm receives a small payment, usually a penny per share, as ...
      Read More »
    • Broker-Reseller

      A type of broker that acts as an intermediary between large brokerages and their clients. Broker-resellers typically take stock orders from clients and then use major brokerages to ...
      Read More »
    • Financial Institution - FI

      An establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Conventionally, financial institutions are composed of organizations such ...
      Read More »
    • Order Management System - OMS

      An electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use OMSs when filling orders for various types of securities ...
      Read More »
    • Primary Dealer

      A pre-approved bank, broker/dealer or other financial institution that is able to make business deals with the U.S. Federal Reserve, such as underwriting new government debt. These ...
      Read More »

Articles Of Interest

Partner Links