World Library  
Flag as Inappropriate
Email this Article

Broker

Article Id: WHEBN0000397129
Reproduction Date:

Title: Broker  
Author: World Heritage Encyclopedia
Language: English
Subject: Haym Salomon, Midpoint (company), Stock market, 2013–14 Rangers F.C. season, Edinburgh Stock Exchange
Collection: Business and Financial Operations Occupations
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Broker

A broker is an individual or parties (brokerage firm) that arranges transactions between a buyer and a seller for 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

  • Definition 1
  • Etymology 2
  • Types of brokers 3
  • References 4

Definition

In general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus 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 market information regarding prices, products, and market conditions. Brokers may represent either the seller (90% of the time) or the buyer (10%) 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]

Before hiring a broker, it may be considered prudent to research the requirements relating to someone using the title. Some titles, such as Real Estate Brokers, often have strict state requirements for using the term, while others, such as Aircraft Brokers, typically have no formal licensing or training requirements.[2]

Etymology

The word "broker" derives from Old French broceur "small trader", of uncertain origin, but possibly from Old French brocheor meaning "wine retailer", which comes from the verb brochier, or "to broach (a keg)".[3]

Types of brokers

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. ^ "International Certified Aircraft Sales Professionals". ICASP.org. International Certified Aircraft Sales Professionals. Retrieved 2013-05-27. 
  3. ^ Harper, Douglas. "broker".  
  4. ^ http://www.wassenaar.org/guidelines/docs/Elts_for_effective_legislation_on_arms_brokering.pdf
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from World eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.