broker

Financial/Securities LawLegal glossary term

Legal Definition

In a legal context, a broker is an intermediary who connects buyers and sellers in a transaction, often facilitating the sale of a security or asset. The broker acts as an agent to execute transactions on behalf of clients, typically within financial markets or regulated industries.

Plain-English Translation

A broker is like a person who helps you buy or sell something, like stocks or real estate. They make sure the deal happens correctly and connect buyers with sellers so that the transaction completes legally.

Context in Contracts

The broker's role is crucial because it defines the mechanism through which a transaction occurs. Legal documents often define the broker's duties, responsibilities, and fiduciary obligations related to the sale or purchase process.

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01

A securities broker who executes a stock transaction.

02

A brokerage firm that facilitates the sale of real estate.

Document context

How broker shows up in legal documents

What is it?

A broker is an individual or entity that acts as an agent to execute transactions on behalf of clients, typically in financial markets, where they facilitate the buying and selling of securities or assets.

Why does it matter?

The broker's role is crucial because it defines the mechanism through which a transaction occurs. Legal documents often define the broker's duties, responsibilities, and fiduciary obligations related to the sale or purchase process.

When does it matter?

It usually appears in contexts involving securities transactions, financial brokerage services, insurance underwriting, or asset management where an intermediary is needed to execute the trade.

Where is it usually seen?

It is commonly seen in securities law, financial regulations, brokerage agreements, and regulatory filings related to financial transactions.

Who is affected?

The broker is affected by the parties involved in the transaction (the buyer and seller) and the regulated entities that oversee the brokerage function.

How does it work?

The broker functions by acting as a licensed agent or intermediary to execute a trade, ensuring proper execution according to the terms agreed upon by the client. This involves fulfilling specific duties related to the sale or purchase process.

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Wikipedia

Broker

Broker

A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be...

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Disclaimer: We do not provide legal advice. We translate legal language into plain English and help you prepare for a conversation with a lawyer.