dealer

Dealer

1. An individual or firm willing to buy or sell securities for their own account.

2. One who purchases goods or services for resale to consumers.

Investopedia Commentary

A dealer differs from an agent in that a dealer acts as a principal in a transaction. That is, a dealer takes ownership of assets and is exposed to inventory risk, while an agent only facilitates a transaction on behalf of a client.

Related Links

Brokers and Online Trading

See also: Ask Price, Bid Price, Broker, Broker-Dealer, Principal

dealer

An individual or a firm that buys assets for and sells assets from its own portfolio as opposed to bringing buyers and sellers together. In practice, many firms operate as broker-dealers and perform both services depending on the market conditions and on the size, type, and security involved in a particular transaction. Dealers are sometimes able to offer investors better prices, but they may tend to make recommendations based on their own ownership positions. Compare broker.