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Simple English definitions for legal terms
note broker
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A quick definition of note broker:
A note broker is a person who helps others buy or sell commercial paper, which is a type of financial document. They act as a middleman between the buyer and seller and earn money for their services. Note brokers do not own the commercial paper themselves, but they help others find the right deal.
A more thorough explanation:
Definition: A note broker is a type of broker who negotiates the discount or sale of commercial paper.
Example: John owns a small business and needs to raise some cash quickly. He decides to sell some of his accounts receivable to a note broker. The note broker negotiates with John to buy the accounts receivable at a discount and then sells them to investors who are looking for a safe and profitable investment.
This example illustrates how a note broker acts as an intermediary between a seller of commercial paper (in this case, John's accounts receivable) and investors who are looking to buy it. The note broker helps John get the cash he needs quickly, while also providing a profitable investment opportunity for investors.