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. The NASDAQ Pre-Market: What You Need ...
    Investing Basics

    The NASDAQ Pre-Market: What You Need ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center