Broker-dealer

Also called: broker dealer, registered broker-dealer

In one line

A regulated firm licensed to arrange or execute securities transactions, including many private secondary sales.

In plain English

Buying and selling securities for others is a regulated activity. Legitimate secondary platforms and intermediaries operate as, or through, registered broker-dealers to handle your sale lawfully.

If you were explaining it to a 5-year-old

A grown-up with an official licence who's allowed to help kids buy and sell these special toys properly.

Why it matters when you sell

Dealing through a registered broker-dealer helps ensure your secondary is handled legally and safely — worth checking for.

Put it to use

Compare secondary platforms

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Sources

Primary references for this term: US SEC / Investor.gov. Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Broker-dealer

Related terms

Put it to use