Description
A broker-dealer is an individual or company that buys and sells securities such as stocks, bonds and mutual funds. Broker-dealers can buy and sell on behalf of clients (in which case, they’re acting as a broker), for their own account (as a dealer), or both. In addition to registering with the SEC, broker-dealers are also usually members of FINRA.
The financial products a representative for a broker-dealer can sell depends on their licenses. For example, a broker-dealer who has passed the Series 6 exam is limited to selling mutual funds, variable annuities and related products. A Series 7 license allows the holder to sell additional securities. BrokerCheck can also be used to verify brokers.
