broker investment & finance definition
An
individual or firm who acts as an intermediary between a buyer and seller. A
broker usually charges a commission for services. A broker also may be a person
who sells insurance products offered by different companies or someone who
sells real estate.
See broker in Wall Street Words
- An individual or a firm that brings together buyers and sellers but does not take a position in the asset to be exchanged. Some observers believe a broker provides an unbiased opinion on a security since there is little self-interest involved in the transaction. Compare dealer.
- See registered representative.
What should I look for in a broker?
When interviewing prospective brokers, you should look for one with a clean NASD record, great referrals, and stability in his or her business. In addition, he or she should not be transaction oriented but should instead be concerned about your values and goals and be willing to realize that the best trade may be no trade. In summary, you should look for a financial advisor rather than just a “broker.”
George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA
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