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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.


References in periodicals archive ?
The combination of ICAP s market-leading position in broking interest rate swaps and IIS adoption of the IOSCO Principles for Financial Benchmarks ensures that IIS is uniquely positioned to provide an index which, via the appropriate product, will provide meaningful and useful information to assist with hedging.
Barclays Plc (LSE: BARC) has announced that it has promoted Mark Astaire as chairman of corporate broking.
Hong Kong: HSBC Holdings, Europe's biggest lender, is closing the unit that offers retail broking and depository services in India as the bank focuses on expanding faster-growing operations.
Currently there are nine registered insurance brokers authorized to undertake the direct insurance broking in Pakistan.
Marnix will enhance its treaty reinsurance broking function in the cooperation with Cooper Gay and utilize Cooper Gay's strong relationship with western (re)insurers.
They taught Entrepreneurial Skills (to run a successful business one needs certain skills like leadership, innovation, and risk taking ability), Real Estate Knowledge (market trends, best practices in property transactions, competitors), Business Plan (key aspects that need to be taken care of to successfully grow a business globally), Resources for Small Business (what facilities are needed and how to optimize them) and last but not the least Customer Expectations and Behaviour (the current and future trends of how customers will demand broking services).
Brewin's corporate advisory and broking head Jamie Cumming said the contacts of N+1 as well as its experience around the continent would enable North East clients to reach a broader range of potential investors and buyers.
As chief broking officer for Europe, Middle East and Africa at Aon Risk Solutions, the worldwide leader in risk management and insurance broking, Soeteman-Reijnen oversees 30 national and two regional broking operations that focus on providing innovative broking products and solutions to Aon's global client base.
Employees of broking houses faced some surprises, not pleasant, though.
costs, including the establishment of DCS's City based corporate broking team
Ambit is a leading financial services group in India with interests in investment banking, private equity, stock broking and consulting.
The company has a range of contracts to assess and certify professionals in real estate, insurance, mortgage broking, contracting, employment and healthcare industries.