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Finance: What is a Broker-Dealer? 16 Views
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Description:
What is a Broker-Dealer? A broker-dealer trades for both its own account and for the accounts of its clients. It acts as a broker when it buys and sells for client accounts and as a dealer when it buys and sells for its own account.
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- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
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- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Bonds
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- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Index Funds
- Terms and Concepts / Investing
- Terms and Concepts / IPO
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Transcript
- 00:00
Finance a la shmoop.. what is a broker-dealer? It's one of [Homeless guys holding help signs]
- 00:07
these guys who's making less than minimum wage right no that'd be a broke
- 00:12
dealer and you won't find too many of them in Lake Tahoe but yeah a broker is [Man talking about broker-dealers in Lake Tahoe]
- 00:17
just someone who takes a commission for selling stuff they live wherever there
- 00:22
are transactions in cars, boats, planes, homes and securities like stocks and
Full Transcript
- 00:27
bonds so yeah it's a broker - dealer sort of like a writer-director
- 00:33
sexual deviant in Hollywood... Key takeaway here the broker dealer brokers
- 00:38
securities ie they take a commission and they deal in securities like they carry [People playing blackjack]
- 00:44
their own inventory of ten million shares of Amazon this week's selling
- 00:49
them for twelve hundred ninety dollars and 32 cents a share and buying them for
- 00:53
twelve hundred eighty eight dollars seventy nine cents a share making a
- 00:57
spread of...
- 01:00
equals a dollar fifty-three a share the dealer makes a spread of a buck fifty [Dealer and market transferring cash and stock]
- 01:06
three every time she trades a share of the Walmart killing behemoth yeah it's
- 01:11
sort of a Goliath slaying Goliath story there that Amazon Walmart thing we're
- 01:15
watching it so think about broker-dealer making money on both sides of the trades
- 01:20
that's the way to go if you're going to Wall Street make money no matter what [Man walking on Wall Street]
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