Broker [Meaning] - MasterTerms.com

Broker

A broker is a professional or firm that acts as an intermediary between buyers and sellers, facilitating transactions in financial markets.

Brokers help clients execute trades, provide market insights, and may offer additional services such as portfolio management and financial advice. They earn a commission or fee for their services, which can vary based on the type of transaction and the broker’s fee structure.

Broker Example

For example, when an individual wants to buy shares of a company, they may contact a stock broker who will execute the trade on their behalf. If the stock is priced at $100 per share and the individual wants to buy 10 shares, the broker will carry out the transaction and charge a commission for the service, making it easier for the investor to access the stock market.