BROKER DEALER

Broker dealer is referred as a company or a corporation who does trading in online stock trades for their own account to but to represent their client. When the company does trading of any kind of security in online stock trades which is representing their client, known as broker. But when the same trading is done in online stock trades for the purpose of representing the client but through his own account, and then the representing company is known as dealer.In this situation, stock are purchased from other firms or customer with in the capacity of the broker dealer in online stock trades and again these stocks may be sell out to other clients or company within the range of the broker dealer in online stock trades.These broker dealers of online stock trades may be an independent body and only providing the services of broker dealer to the client in online stock trades, and some may be a part of commercial banks or investing companies. Regulation of Broker dealers:In most states of US, these broker dealers of online stock trades are regularized by the SEC under the security act of 1934. SEC is a part of United States part. Some US states regulate these broker dealers of online stock trades under their separate security law. These separated laws of each state are known as blue-sky law.
According to 1943 security act of online stock trades, a person affecting the transactions of stocks in online stock trades for the other’s account, named as broker. A person engaged in the same business of purchasing and selling for his own account with the help of broker is known as broker. Besides these definitions if the person is conducting the same business on his own personal basis, then they are categorized as trader of
Online stock trades.