: The firm acts as an intermediary, executing trade orders for clients and charging a commission or fee for the service.
: The firm trades for its own account, buying and selling from its own inventory. They often profit from the "spread" —the difference between the purchase and sale price. Key Functions and Services broker-dealer
: They provide liquidity to the markets by standing ready to buy or sell specific securities at any time. : The firm acts as an intermediary, executing
The hyphenated name reflects the two distinct capacities in which these firms operate: broker-dealer