Business, Legal & Accounting Glossary
n. anyone who buys goods or property for the purpose of selling as a business. It is important to distinguish a dealer from someone who occasionally buys and occasionally sells, since dealers may need to obtain business licenses, register with the sales tax authorities, and may not defer capital gains taxes by buying other property.
A dealer is an individual or entity that buys and sells a particular good and holds an inventory in that good. In contrast to an agent, the dealer always acts as the principal in a transaction, whereas the agent represents a client. The dealer has a natural niche in the trade in any high-priced good, particularly where specialized knowledge is an asset. The art dealer, diamond dealer, and antique dealer are prime examples. In the equity markets, a dealer is an entity that stands ready to buy or sell shares so that orders can be filled promptly. The equity dealer is known as a specialist if the stock is listed or as a market maker if the stock is traded over the counter. The broker/dealer is a firm that both trades for itself as a dealer and acts as a broker for its clients.
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This glossary post was last updated: 27th April, 2020 | 6 Views.