Category: Broker-dealers
Broker-dealers are financial entities or individuals that facilitate the buying and selling of securities, acting as both brokers and dealers in the financial markets. As brokers, they execute trades on behalf of clients, earning commissions for their services. As dealers, they buy and sell securities for their own accounts, profiting from the difference between the purchase and sale prices. Broker-dealers are required to register with regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA) in the United States, to ensure compliance with industry standards and regulations. This dual role allows them to provide liquidity to the markets while also serving the investment needs of individual and institutional clients.