What are Broker-Dealers?
Broker-dealers are financial intermediaries that assist individuals and institutions in buying and selling securities. They operate in both capacities: as brokers, they execute trades on behalf of clients, and as dealers, they trade securities for their own accounts.
Services Provided
Broker-dealers offer a range of services including trade execution, investment advice, portfolio management, and access to various financial instruments. They are essential for providing liquidity and market access to investors.
Regulatory Environment
Broker-dealers are subject to stringent regulations to ensure transparency and protect investors. They must comply with rules set by regulatory bodies, which oversee their operations, financial practices, and ethical standards.
Risks Involved
Engaging with broker-dealers involves certain risks, including the potential loss of capital. It's important for investors to conduct thorough research and understand the risks associated with trading and investing in financial markets.
