broker-dealer
UK[ˈbrəʊkə ˈdiːlə]US[ˈbroʊkər ˈdiːlər]
n
a firm or individual that acts as both a broker (executing orders on behalf of clients) and a dealer (trading for its own account) in the securities market.
Morpheme Breakdown
broker
dealer
broker
agent
dealer
trader
Etymology
the compound term 'broker-dealer' is a modern financial industry construct, combining two established agentive nouns. 'broker' entered english via the anglo-french legal and commercial sphere, its origins likely linked to the idea of one who taps or opens a cask, metaphorically extending to one who facilitates a transaction. 'dealer' derives from the old english verb 'dǣlan', meaning to divide or share, evolving to signify one who distributes goods. in the 20th-century securities industry, these roles became formally distinct yet often combined within a single entity, leading to the hyphenated compound that specifies a firm performing both the agency function of a broker and the principal function of a dealer.
Analysis
Structure: broker (agent) + dealer (trader)
broker: from middle english 'brocour', from anglo-french, of uncertain origin, possibly from old french 'brocheor' (one who opens wine casks). functional role: base noun denoting an agent who arranges transactions.
dealer: from middle english 'deler', from old english 'dǣlan' (to divide, distribute). functional role: base noun denoting a person who trades or distributes.
Examples
the investment bank is registered as a broker-dealer with the securities and exchange commission.
as a broker-dealer, the firm can both execute client trades and hold an inventory of bonds for sale.
the new regulations imposed stricter capital requirements on all broker-dealers.