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Simple English definitions for legal terms
broker
Read a random definition: ostensible agency
A quick definition of broker:
A broker is someone who helps people buy or sell things, like houses, stocks, or insurance. They get paid a fee for their help. Brokers are not the same as agents, who work for someone else. There are many different types of brokers, and they have to follow rules to make sure they are fair to their customers.
A more thorough explanation:
A broker is a person or entity that acts as an intermediary between a buyer and seller for a commission. They arrange contracts and facilitate transactions. Brokers are independent parties and are different from agents who act on behalf of a principal party in a deal.
- Broker-dealer for trading securities
- Customs broker
- Real estate broker
- Insurance broker
- Mortgage broker
Brokers in many fields are regulated and licensed by each state and have a fiduciary duty to act in the best interests of their customers or clients. Brokerage firms are also generally subject to regulations based on the type of brokerage and jurisdiction.
For example, a real estate broker helps buyers and sellers of properties to connect and negotiate a deal. They earn a commission for their services. Similarly, a customs broker helps importers and exporters to navigate customs regulations and procedures. They also earn a commission for their services.
Overall, brokers play an important role in facilitating transactions and connecting buyers and sellers in various industries.