Wednesday’s Word: Dealer

By Dylan Donley, Spring 2014 Graduate Research Assistant

A dealer is defined by Section 3(a)(5)of the Securities Exchange Act of 1934 as “any person engaged in the business of buying and selling securities for his own account, through a broker or otherwise…” A dealer acts as a principal in trading for its own account, as opposed to a broker who acts as an agent in executing orders on behalf of its investor clients. Like a broker, however, a dealer may be an individual or an entity.