Broker

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A broker is an individual who arranges transactions between a buyer and a seller for a commission when the transaction is executed. The broker who also acts as the seller or as the buyer becomes the main party in the transaction. The role should not be confused with the role of the agent - the person acting on behalf of the main party in an agreement.

Video Broker

Definisi

Brokers are independent parties, whose services are widely used in some industries. The primary responsibility of a broker is to bring the seller and buyer together and thus the broker is a third-party facilitator between the buyer and the seller. An example is a real estate broker that facilitates property sales.

Brokers can also provide market information about prices, products, and market conditions. Brokers can represent sellers or buyers but not both at the same time. Examples are stockbrokers, who sell or buy securities on behalf of their clients. Brokers play a big part in selling stocks, bonds, and other financial services.

There are advantages to using a broker. First, they know their markets and are already in contact with prospective accounts. Brokers have the tools and resources to reach the largest possible buyers base. They then filter out these potential buyers for revenue that will support potential acquisitions. An individual producer, on the other hand, especially a new one in the market, probably will not have the same access to customers as a broker. Another benefit of using a broker is cost - they may be cheaper in smaller markets, with smaller accounts, or with a limited product line.

Before hiring a broker, it may be considered wise to examine the requirements relating to someone using the title. Some titles, such as real estate brokers, often have strict requirements to use the term, while others, such as aircraft brokers, usually do not have licensing or formal training requirements.

Maps Broker

Etymology

The word "broker" comes from the Old French brochure "small trader", an uncertain origin, but probably from Old French brocheor meaning "wine seller", derived from a verb brochier , or "to start (tong)".