- CFA Exams
- Forums
- General Forum
- Topic: Whats the difference between a Broker and dealer
| Author | Topic: Whats the difference between a Broker and dealer |
|---|---|
| Bolshevist @2016-08-15 20:16:17 |
Hi All, Can anyone explain me the difference between a broker and dealer? If an agent places an order for multiple firms like Morgan Stanley, Merril and goldman, for their firm accounts(not for their customers), will he be called a dealer or a broker of these firms. Is it that a dealer places order only for his own firm account(of which he is an employee) and called a broker if he places order for his firm's customers or for other firms and their customers?. |
| jonan203 @2016-08-17 13:36:17 |
a broker facilitates a transaction between a buyer and seller, either finding a buyer for the seller or a seller for the buyer, essentialy he has no financial interest in the issue other than a commission. a dealer actually takes inventory in the particular issue being sold (equity, real estate, bonds, etc), and can experience a gain (or loss) depending on what the market value of the issue is when sold (or bought), dealers have a financial interest, brokers do not. hope this helps... |
CFA Discussion Topic: Whats the difference between a Broker and dealer
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
