A broker-dealer's a company or other organization that trades securities for its own account or on behalf of its customers. When executing trade orders on behalf of a customer, the institution's said to be acting as a broker. When executing trades for its own account, the institution's said to be acting as a "dealer." Securities bought from clients or other firms in the capacity of dealer may be sold to clients or other firms acting again in the capacity of dealer, or they may become a part of t… (More on Broker-dealer)