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A financial market intermediary who acts as agent for one or both parties to a transaction. It is important to understand the difference between a broker who does not commit capital to a transaction and a dealer who may take one side of a trade for his firm's account. The broker receives a commission for service while the dealer hopes to find the other side of the transaction and earn a spread by closing out the position at a profit in a subsequent trade with another party. See Brokerage, Commission, Courtage, Dealer.
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