broker

business law

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Last updated

June 22, 2026

Quick Summary

A broker is an individual or entity that facilitates agreements or transactions between two or more parties. This can involve acting as a mediator in negotiations or as an intermediary in a business deal, where they handle the exchange of goods or services for money.12

In the context of financial services, a broker-dealer is regulated to act in the best interest of their clients. This means they must prioritize the client's financial well-being over their own financial incentives, such as commissions. This regulation ensures that recommendations for investments, account types, or asset rollovers are suitable and beneficial for the client.3

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

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agency
Broker (German Mäkler, French courtier, Italian mediatore)
The broker is a business agent who is completely independent of his principal. In the area of employment brokerage or placement services, most European countries have passed special regulatory legislation to protect the interests of those persons using…
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The broker is a business agent who is completely independent of his principal. In the area of employment brokerage or placement services, most European countries have passed special regulatory legislation to protect the interests of those persons using…
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security
Organization of exchanges
There are several kinds of brokers on the floor of the exchange. They include the commission broker who executes customer orders placed at or near the current market price; the specialist in one or more issues who, as a broker, executes limited orders for other members and, as a dealer,…
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There are several kinds of brokers on the floor of the exchange. They include the commission broker who executes customer orders placed at or near the current market price; the specialist in one or more issues who, as a broker, executes limited orders for other members and, as a dealer,…
Read More