broker


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Related to broker: Stock broker, Mortgage broker, Freight Broker

broker,

one who acts as an intermediary in a sale or other business transaction between two parties. Such a person conducts individual transactions only, is given no general authority by the employers, discloses the names of the principals in the transaction to each other, and leaves to them the conclusion of the deal. The broker neither possesses the goods sold nor receives the goods procured; brokers take no market risks and transfer no title to goods or to anything else. A broker earns a commission, or brokerage, when the contract of sale has been made, regardless of whether the contract is satisfactorily executed. The broker is paid by the party that started the negotiation. In practice, merchants and other salespeople act as brokers at times.

Brokers are most useful in establishing trade connections in those large industries where a great many relatively small producers (e.g., farmers) compete for a wide market. They operate in strategic cities and keep in active touch with the trade needs of their localities and with one another. They are important in determining prices, routing goods, and guiding production, and in those functions play a part similar to that of the highly organized exchanges. Brokers also negotiate trades in property not directly affecting production; examples are stockbrokers and real estate brokers.

Types of Brokers

Employment agents are really brokers, as they bring together the buyers and sellers of labor. Merchandise brokers arrange sales between manufacturers and wholesalers or retailers, between producers and users of raw materials, and sometimes between two manufacturers. Small concerns use retail brokers instead of maintaining their own sales forces. Insurance brokers bring together insurance companies and those who want insurance. They are most useful to those needing several types of insurance protection and to those whose large risks must be divided among many companies. Real estate brokers negotiate sales and leases of farms, dwellings, and business property and are often also insurance brokers. Ship brokers keep informed of the movement of vessels, of cargo space available, and of rates for shipment and sell this information to shippers. They serve tramp carriers in the main, inasmuch as the larger ship lines have their own agents. Such brokers also serve as post agents, in which capacity they settle bills for stores and supplies, pay the wages of the crew, and negotiate insurance for the vessel and cargo. They also arrange the sale of ships. In the organized markets, such as grain and stock exchanges, commission merchants and straight selling displace brokerage in large part, but between cities and where there is no active exchange, brokers in grain and other commodities are active. Members of organized exchanges usually act as commission merchants or trade on their own account. However, in the New York Stock Exchange a group of members called "floor brokers" perform the actual trading on the exchange floor for representatives of commission houses, taking no responsibility and receiving a small fee. In the United States, note brokers buy promissory notes from businessmen and sell them to banks. Traders in acceptances and foreign bills of exchange are known in the United States as acceptance dealers. Customs brokers are not actually brokers; they act as agents for importers in estimating duties and clearing goods. The pawnbrokerpawnbroker,
one who makes loans on personal effects that are left as security. The practice of pawnbroking is ancient, as is recognition of the danger it involves of oppressing the poor.
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 is a private money lender. Technology in the 1990s changed the nature and importance of some brokers, when the InternetInternet, the,
international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises (called gateways
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 allowed people to, for example, trade stocks and purchase insurance directly, without the aid (or with the minimum aid) of brokers.

broker

References in classic literature ?
He's on the Stock Exchange, and he's a typical broker.
Cornelius might be a broker, but we have found no scrip to correspond with these large payments.
I shall tell them," he said, "that I apprehended you after you escaped from the camp, that I took you to Achmet Zek, and that as he was engaged in a stubborn battle with the Waziri, he directed me to return to camp with you, to obtain here a sufficient guard, and to ride north with you as rapidly as possible and dispose of you at the most advantageous terms to a certain slave broker whose name he gave me.
One broker left him a check for twenty thousand dollars, another for nearly forty thousand.
If they had made him a Money Lender, or a sharp Attorney, or a Sheriff's Officer, or a Broker, he might have sown his discontented oats in his youth, and, after having had the full run of himself in ill-natured transactions, might have turned out amiable, at last, for the sake of a little freshness and novelty.
This experience entitled me to be regarded as a sort of real-estate broker by my friends.
Pitcher, confidential clerk in the office of Harvey Maxwell, broker, allowed a look of mild interest and surprise to visit his usually expressionless countenance when his employer briskly entered at half past nine in company with his young lady stenographer.
When Rawdon and his wife wished to communicate with Captain Dobbin at the sale, and to know particulars of the catastrophe which had befallen Rebecca's old acquaintances, the Captain had vanished; and such information as they got was from a stray porter or broker at the auction.
The amphitheatre was packed, from the bull-ring to the highest row - twelve thousand people in one circling mass, one slanting, solid mass - royalties, nobles, clergy, ladies, gentlemen, state officials, generals, admirals, soldiers, sailors, lawyers, thieves, merchants, brokers, cooks, housemaids, scullery-maids, doubtful women, dudes, gamblers, beggars, loafers, tramps, American ladies, gentlemen, preachers, English ladies, gentlemen, preachers, German ditto, French ditto, and so on and so on, all the world represented: Spaniards to admire and praise, foreigners to enjoy and go home and find fault - there they were, one solid, sloping, circling sweep of rippling and flashing color under the downpour of the summer sun - just a garden, a gaudy, gorgeous flower-garden
A firm of brokers will count it an ordinary year's talking to send fifty thousand messages; and there is one firm which last year sent twice as many.
But yet certain though it be, it hath flaws; for that the scriveners and brokers do value unsound men, to serve their own turn.
Da Souza seems to be selling out carefully a few at a time, and my brokers are buying most of them.