Broker

Broker
For other uses, see Broker (disambiguation).
"Brokerage" redirects here. For the not-for-profit organization "the Brokerage", see The Brokerage Citylink.

A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Distinguish agent: one who acts on behalf of a principal.[1]

Contents

In general a broker is an independent agent used extensively in some industries. The prime responsibility of a broker is to bring sellers and buyers together. Therefore, a broker is the third -person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property.[1]

Brokers also can furnish considerable market information regarding prices, products and market conditions. Brokers may represent either the seller (90 percent of the time) or the buyer (10 percent) but not both at the same time. An example would be a stockbroker, who makes the sale or purchase of securities on behalf of his client. Brokers play a huge role in the sale of stocks, bonds and other financial services.[1]

There are advantages to using a broker. First, they know their market and have already established relations with prospective accounts. Brokers have the tools and resources to reach the largest possible base of buyers. They then screen these potential buyers for revenue that would support the potential acquisition. An individual producer, on the other hand, especially one new in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost — they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.[1]

Etymology

The word "broker" derives from Anglo-Normandian brocour "small trader," of uncertain origin, but possibly from Old French brocheor "wine retailer," which comes from the verb brochier "to broach (a keg)."[2]

Types of brokers

See also

  • Brokerage firm

References

  1. ^ a b c d Spiro, Rosann L., William J. Stanton, and Gregory A. Rich. Management of a sales force . 12th ed. Boston: McGraw-Hill/Irwin, 2003
  2. ^ Harper, Douglas. "broker". Online Etymology Dictionary. http://www.etymonline.com/index.php?term=broker. Retrieved 2010-04-10. 

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Look at other dictionaries:

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  • Broker — Bro ker (br[=o] k[ e]r), n. [OE. brocour, from a word akin to broken, bruken, to use, enjoy, possess, digest, fr. AS. br[=u]can to use, enjoy; cf. Fries. broker, F. brocanteur. See {Brook}, v. t.] 1. One who transacts business for another; an… …   The Collaborative International Dictionary of English

  • broker — [ brɔkɶr ] n. m. • 1980; mot angl. « courtier » ♦ Anglic. Fin. Opérateur sur les places financières anglo saxonnes. ⇒ trader. Par ext. Intermédiaire dans des opérations financières, commerciales. (Recomm. offic. courtier.) ● broker nom masculin… …   Encyclopédie Universelle

  • Bröker — ist der Familienname folgender Personen: Anja Bröker (* 1973), deutsche Fernsehmoderatorin Johann Bröker (1806–1890) deutscher Autor, evangelisch lutherischer Theologe und Mitglied der Holsteinische Ständeversammlung Thomas Bröker (* 1985),… …   Deutsch Wikipedia

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  • broker — / brəʊkə/, it. / broker/ s. ingl. (propr. mediatore, sensale ), usato in ital. al masch. 1. (prof.) [chi svolge intermediazione in affari commerciali] ▶◀ intermediario, mediatore, (disus.) sensale. 2. (prof.) [chi esegue compravendita di titoli]… …   Enciclopedia Italiana

  • bróker — Voz tomada del inglés broker, ‘persona que actúa como intermediario por cuenta ajena en operaciones comerciales, de seguros o bursátiles’. En español ha de escribirse con tilde por ser palabra llana terminada en consonante distinta de n o s (→… …   Diccionario panhispánico de dudas

  • broker — /ˈbroker, ingl. ˈbrəukə(r)/ [vc. ingl., da una vc. fr., che significava «colui che vende il vino alla brocca»] s. m. inv. (banca) agente di cambio, intermediario, mediatore, agente …   Sinonimi e Contrari. Terza edizione

  • broker — brȍker m DEFINICIJA bank. ekon. razg. 1. onaj koji na burzi trguje ili posreduje u kupnji i prodaji vrijednosnih papira i dionica, burzovni stručnjak, posrednik; mešetar, senzal 2. tvrtka ili pojedinac unutar tvrtke koji obično nije vlasnik… …   Hrvatski jezični portal

  • Broker — Broker: Die Berufsbezeichnung für den Wertpapierhändler findet sich im Dt. seit der 2. Hälfte des 20. Jh.s belegt. Sie stammt aus dem gleichbed. engl. Substantiv broker. Dieses geht zurück auf anglonorm. brocour, broggour und bedeutete eigentlich …   Das Herkunftswörterbuch

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