BROWSE

Dealer

What is a 'Dealer'

A dealer is a person or firm in the business of buying and selling securities for their own account, whether through a broker or otherwise. A dealer is defined by the fact that it acts as principal in trading for its own account, as opposed to a broker who acts as an agent in executing orders on behalf of its clients. A dealer is also distinct from a trader in that buying and selling securities is part of its regular business, while a trader buys and sells securities for his or her own account but not on a business basis.

Explaining 'Dealer'

While “dealer” is a separate registration category in the U.S., in Canada the term is used as the shortened version of “investment dealer,” which is the equivalent of a broker-dealer in the U.S.


Further Reading


Optimal dealer pricing under transactions and return uncertainty
www.sciencedirect.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

What financing data reveal about dealer leverageWhat financing data reveal about dealer leverage
papers.ssrn.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

The federal reserve's primary dealer credit facilityThe federal reserve's primary dealer credit facility
papers.ssrn.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

The failure mechanics of dealer banksThe failure mechanics of dealer banks
www.aeaweb.org [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

Structural organization of secondary markets: Clearing frequency, dealer activity and liquidity riskStructural organization of secondary markets: Clearing frequency, dealer activity and liquidity risk
www.jstor.org [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

On dealer markets under competitionOn dealer markets under competition
www.jstor.org [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

Dealer behavior and trading systems in foreign exchange marketsDealer behavior and trading systems in foreign exchange markets
www.sciencedirect.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

… of dealer credit terms related to securities financing and OTC derivatives: some initial results from the new Senior Credit Officer Opinion Survey on Dealer Financing …… of dealer credit terms related to securities financing and OTC derivatives: some initial results from the new Senior Credit Officer Opinion Survey on Dealer Financing …
papers.ssrn.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …

Optimal dealer pricing under transaction uncertaintyOptimal dealer pricing under transaction uncertainty
link.springer.com [PDF]
… Publishmg Company OPTIMAL DEALER PRICING UNDER TRANSACTIONS AND RETURN UNCERTAINTY … In this paper the optimal bid and ask prices are determined such that the dealer's expected utility of terminal wealth is maximized. Our concern is primarily with the risk …



Q&A About Dealer


What is a dealer?

A dealer is a person or firm in the business of buying and selling securities for their own account, whether through a broker or otherwise.

How are dealers different from brokers?

Dealers buy and sell securities on their own behalf while brokers execute orders on behalf of clients.

Is there any difference between a trader and a dealer?

Yes, there are differences between dealers and traders.

Who acts as principal in trading for its own account?

A dealer acts as principal in trading for its own account.

How does being registered as an investment dealer differ from being registered as an investment advisor?

In Canada, registration as an investment advisor requires that you act only as agent to your client whereas registration as an investment dealer allows you to trade on your own behalf but also requires that you provide advice to your clients.