broker

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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 periodicals archive ?
The new regulations allow the stockbrokers to provide securities advisory to their customers, without receiving any separate compensation for it.
Finance Secretary Carlos Dominguez III has expressed frustration over the continued failure of PSE to take the proper steps to compel its stockbrokers to divest some of their stocks to meet the 20-percent ownership requirement.
There are over 35 thousand stockbrokers and sub stock brokers in India.
Belfort was the chief executive officer and trainer of 22 stockbrokers who he instructed on how to lie to customers to achieve stock sales--sales resulting in substantial profits via insider trading by Belfort and substantial losses of savings by customers.
Stockbrokers may have clients that include experienced traders as well as those who have started their venture in stocks.
The only surprise is that Bloxham waited so long to offer support, given one of Nama's aims is to bail out the same bondholders who trade with stockbrokers like Bloxham.
In another consolidation, Evolve Capital made a share offer for Blue Oar stockbrokers, valuing the company at pounds 17.
READERS of the FT's leading private investor magazine Investors' Chronicle voted local stockbroker, Redmayne-Bentley, West Street, Warwick, best advisory stockbroker and best portfolio manager 2007, at the national awards, sponsored by the London Stock Exchange.
Tom Ryan, director of Barclays Stockbrokers, said: "Investors have been extremely savvy over the last couple of months and rather than shying away from volatile markets they have taken advantage of the buying opportunity.
Henk Potts, equity strategist at Barclays Stockbrokers, said, 'Schools and universities are large-scale focus groups where the latest trendy products appear long before they hit the trading floors of city stockbrokers.
More than one in two private investors (57 per cent) believes that the market will rise over the next three months, according to a survey by Barclays Stockbrokers.