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. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  5. Agency Broker

    A broker that acts as an agent to its clients. When acting as ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
RELATED FAQS
  1. What does the variance between the bid and ask price of a stock mean?

    The variance between a security's bid price and its ask price, also known as the bid-ask spread, represents the different ... Read Full Answer >>
  2. When is a share purchase marked as 'settled' by a brokerage?

    The T+3 rule governs the settlement of stock share purchases. Per the rule, set by the Uniform Practice Code, purchases of ... Read Full Answer >>
  3. What financial regulation exist to control the secondary market?

    The secondary market, most commonly referred to as the stock market, is largely built on self-regulating exchanges that also ... Read Full Answer >>
  4. Why is purchasing stocks on margin considered more risky than traditional investing?

    Buying on margin involves borrowing money from a broker to purchase stock. A margin account increases your purchasing power ... Read Full Answer >>
  5. What is the difference between positive correlation and inverse correlation?

    In the field of statistics, positive correlation describes the relationship between two variables which change together, ... Read Full Answer >>
  6. What are my options when I get a margin call?

    The two options available to an investor when he receives a margin call are to deposit additional funds to his trading account ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Cut Commissions With "For Sale By Owner" Sales

    It takes a lot more work, but selling your home without a realtor can have benefits.
  2. Home & Auto

    Finding A Good Real Estate Agent

    Don't go it alone in the real estate market. We'll show you how to find the help you need.
  3. Home & Auto

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  4. Brokers

    Can Tradier's Brokerage API Replace Traditional Brokers?

    Tradier, an up-and-coming brokerage firm that’s carving a niche for itself as the world’s “first brokerage API company,” according to spokesperson Frances Del Valle.
  5. Investing Basics

    Explaining Market Value of Equity

    Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time.
  6. Investing Basics

    What is Spread?

    Spread has several slightly different meanings depending on the context. Generally, spread refers to the difference between two comparable measures.
  7. Investing Basics

    What is the Secondary Market?

    The secondary market is where investors purchase securities or assets from other investors, rather than from the issuing companies themselves.
  8. Brokers

    10 Brokers That Pay You To Open An Account

    Open an account with one of these brokers and you will get a bonus. Just be sure it's the right account for your needs.
  9. Brokers

    How Real Estate Agent and Broker Fees Work

    Buying or selling a home? What you need to know about real estate agent and broker fees.
  10. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.

You May Also Like

Hot Definitions
  1. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  2. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  3. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  4. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
Trading Center