Broker dealer

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Broker dealer

Generally broker is any person engaged in the business of effecting transactions in securities for the account of others. Unlike a broker, who acts as agent, a dealer acts as principal. Generally it is any person engaged in the business of buying and selling securities for his own account, through a broker or otherwise. The definition of "dealer" does not include a "trader," that is, a person who buys and sells securities for his or her own account, either individually or in a fiduciary capacity, but not as part of a regular business. Individuals who buy and sell securities for themselves generally are considered traders and not dealers. A broker-dealer is any person engaged in the business of effecting transactions in securities for the account of others or for his/her own account. Every business that performs such activities in the Commonwealth must register unless it is specifically excluded from the definition of broker-dealer. Every broker-dealer must complete the National Association of Securities Dealers’ ("NASD") Forms BD and U-4.