Broker-dealer: Difference between revisions
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{{anat|brokerage}}An investment firm that acts both as a [[broker]] (or {{tag|agent}}) when it executes orders on behalf of clients, and also as a [[dealer]] (or {{tag|principal}}), when it trades for its own account. | {{anat|brokerage|}}{{g}}An investment firm that acts both as a [[broker]] (or {{tag|agent}}) when it executes orders on behalf of clients, and also as a [[dealer]] (or {{tag|principal}}), when it trades for its own account. | ||
The term {{tag|broker-dealer}} is used in US securities regulation (and in ISDA {{tag|netting}}) parlance to describe stock brokerages, because most of them act as both [[agent|agents]] and [[principal|principals]]. | The term {{tag|broker-dealer}} is used in US securities regulation (and in ISDA {{tag|netting}}) parlance to describe stock brokerages, because most of them act as both [[agent|agents]] and [[principal|principals]]. |