Outside Broker

AAA

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.







RELATED TERMS
  1. Over-The-Counter Market

    A decentralized market, without a central physical location, ...
  2. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  3. Broker Of Record

    In insurance, a broker of record is an agent designated by the ...
  4. Agency Broker

    A broker that acts as an agent to its clients. When acting as ...
  5. Commission

    A service charge assessed by a broker or investment advisor in ...
  6. Exchange

    A marketplace in which securities, commodities, derivatives and ...
Related Articles
  1. Cut Commissions With
    Home & Auto

    Cut Commissions With "For Sale By Owner" ...

  2. Finding A Good Real Estate Agent
    Home & Auto

    Finding A Good Real Estate Agent

  3. Do You Need A Real Estate Agent?
    Home & Auto

    Do You Need A Real Estate Agent?

  4. Pick the Right Brokerage Account for ...
    Options & Futures

    Pick the Right Brokerage Account for ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center