Dealer

A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the bid and ask prices, while also adding liquidity to the market. It neither does business on behalf of a client nor facilitates transactions between parties. A dealer is different from a trader. While a dealer buys and sells securities as part of its regular business, a trader buys and sells securities for his or her own account—not on a business basis.


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