Broker-Dealer Relationships

Broker-dealer relationships involve firms that act as intermediaries in the financial markets—brokers facilitate trades for clients, while dealers buy and sell securities for their own accounts. These entities often have relationships with clients (investors or other firms), providing advice, executing trades, and sometimes managing assets. They earn commissions, fees, or profits from the transactions. Such relationships are regulated to ensure transparency and fairness, aiming to protect clients' interests while enabling efficient market functioning. Overall, broker-dealers are essential in connecting investors with opportunities and ensuring smooth trading activities in the financial system.