DEFINITION OF BROKER-DEALER
A broker-dealer is a firm or individual in the business of buying, selling, and managing securities. A broker-dealer will conduct business as both a broker (buyer) and a dealer (seller) depending on the specific transaction. Broker-dealers are required to be members of the Financial Industry Regulatory Association, also known as FINRA (http://www.finra.org) and legally must also be registered with the United States Securities and Exchange Commission (the SEC).
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