Broker

An agent who brings two parties together, enabling them to enter into a contract to which the broker is not a principal. The broker’s remuneration consists of a brokerage, usually calculated as a percentage of the sum involved in the contract but sometimes fixed by a tariff. Brokers are used because they have specialized knowledge of certain markets or to conceal the identity of a principal, in addition to introducing buyers to sellers [Law, p. 44]. A person or company who does not trade as a principal but puts buyers and sellers in touch with one another. Stockbrokers do this for stocks and shares, commodity brokers for commodities, insurance brokers for insurance policies, and shipping brokers for tramp and charter shipping [Black, Hashimzade, Myles, p. 46]. A market intermediary whose function is to bring buyers and sellers together and to assist in negotiation. A broker assumes no risk, does not finance deals, and does not take title to goods. The party on whose initiative they are acting usually pays them [Doyle, p. 43]. An organization ( brokerage ) or person who negotiates and then makes contracts on behalf of buyers and sellers of property (including choices in activities such as shares) or insurance (a contract providing financial protection against risk). A broker usually charges a fee for its services, commonly known as a brokerage fee. A broker acts in the principal's name in the making of contracts but, unlike an agent, does not act for the principal and does not take possession of the property as an agent may be entrusted to do [Mann, p. 42]. This word originally meant a man who broached wine and then sold it. Hence it came to designate a person who buys to sell again or an agent of some kind. The word is formed similarly to ‘tapster’, who taps a cask [Dent, p. 35].

Sources:

Dent, S. (Ed.) (2012). Brewer’s Dictionary of Phrase & Fable (19 ed.) Oxford: Oxford University Press.

Mann, T. (2017). Australian Law Dictionary (3 ed.) Oxford: Oxford University Press.

Black, J., Hashimzade, N., Myles, G. (2017). A Dictionary of Economics (5 ed.) Oxford: Oxford University Press.

Law, J. (2016). A Dictionary of Business and Management (6 ed.) Oxford: Oxford University Press.

Doyle, C. (2016). A Dictionary of Marketing (4 ed.) Oxford: Oxford University Press.