A broker-dealer is a financial services firm that acts as both a broker and a dealer. As a broker, a broker-dealer helps its clients to buy and sell securities, such as stocks, bonds, and mutual funds. As a dealer, a broker-dealer buys and sells securities for its own account.
Broker-dealers are regulated by financial industry oversight bodies, such as the Securities and Exchange Commission (SEC) in the United States. They are required to follow strict rules and regulations in order to ensure the fair and transparent operation of the financial markets.
There are many different types of broker-dealers, including full-service broker-dealers, which offer a wide range of financial products and services, and discount broker-dealers, which offer more limited services at a lower cost.
Overall, broker-dealers play a critical role in the financial markets by facilitating the buying and selling of securities and helping investors to make informed investment decisions.
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