Outside Broker

Definition of 'Outside Broker'


1. A real estate salesperson and deal facilitator who works for a competing real estate company.

2. A securities broker who does not belong to a major exchange or who deals mainly in securities that aren't traded on exchanges.

Investopedia explains 'Outside Broker'


1. For example, if a property is listed for sale by ABC Brokerage, any broker who does not work for ABC Brokerage would be considered an outside broker. A transaction in which the same broker is involved in both sides of a real estate transaction and represents both the seller and buyer can create an actual or perceived conflict of interest for the buyer. Therefore, the buyer may prefer to work with an outside broker.

2. Not all securities are traded on exchanges because all securities listed on exchanges must meet certain requirements. One such requirement is company size, so an individual wishing to trade in very small companies might require the services of an outside broker.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center