Difference between a stock broker and a stock dealer?

Answer 1

BrokersA broker's primary service is to buy and sell stocks on an exchange for members of the investing public who wish to own part of a company. When anyone decides to participate in the Stock Market, a broker is usually the first place they go. An account is set up for the client through which she trades stocks. The broker accepts stock orders from the client and then executes these directly on the exchange. A business that engages solely in broker services interacts with the stock market for its clients only. Every transaction made affects a client's account. For this reason, a broker is often referred to as an "agent." DealersA stock market dealer trades equities under its own name. The business itself maintains stock holdings that are not in the name of any client. The dealer may actually be a client of another broker, so as to trade these stocks for its own account. However, unlike a "trader," which maintains her own account with a broker that affects no one else, a "dealer" may use its portfolio to offer services to the public. "Market makers" are dealer businesses that continuously buy or sell certain securities from the public, using their own holdings for these transactions. Thus they are in the business of dealing securities independent of an exchange

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