In finance industry, broker-dealer could be an individual person, individual company or group of companies involved in trading business securities. Core responsibilities of any broker-dealer includes, but not limited to, selling and institutionalizing securities for the businesses on regulatory issues and transactions.
In spite of that, broker-dealers do provide financial consulting in stock brokerages; these include giving investment advice to the clients, facilitating trading actions, publishing investment studies and raising capital for investment. They also provide market-making support and management, i.e. announcing and setting prices, selling and buying securities at announced price, putting limits on number of securities to be sold / bought, and validating the period of time for particular securities.
Broker-dealers are well aware of SEC (Securities and Exchange Commission, U.S) securities laws and FAIR act inventory in order to prevent fraud and disciplinary problems. The broker dealers provide simplified management process for the stock exchanges as they handle all the transactions, accounts, and a great deal of tax and regulatory activities. People or firms dealing in brokerage investment consulting should be licensed or registered either with the SEC or the state of securities where business is operating.
Broker-dealer is known as broker when he/she executes secondary market trading orders in assistance to his/her client. When executing trades for its own account, the institution or a person is said to be acting as a dealer. Apart from executing securities orders, broker-dealers are also the main sellers and distributors of mutual fund shares.
Why Broker-dealers are necessary for stock exchange investments?
There are many advantages for investors to seek diligent broker-dealer or brokerage firm, let us share 3 important factors that will help you ensure getting a broker-dealer association:
Shared responsibilities: When affiliating to the broker-dealer, the investments become shared liability of any omission occurred in the insurance policy for both the parties. Thus making it possible to cover the associated cost of the investment.
Profits roll in: It is highly advantageous and wise business decision to plant a broker-dealer connection so as not to limit the business opportunities, including variable annuities, mutual fund investments, and alternative investments.
Value addition: Qualified broker-dealers provide value proposition in businesses by means of all such things investors cannot afford to deal with, including, maintenance of management tools, marketing efforts, technology research and recommendations, etc.
We offer comprehensive directory of qualified broker-dealer investors who are experienced in trading business securities responsibly.