In the world of finance, broker-dealers play a pivotal role in facilitating the functioning of securities markets and providing essential services to investors and traders. This article aims to demystify the concept of a broker-dealer by explaining what they are and what they do. A broker-dealer is a financial institution or an individual that combines two distinct roles in the financial markets: that of a broker and that of a dealer. Let’s break down these roles 1. Broker As a broker, a broker-dealer acts as an intermediary between buyers and sellers in financial markets. They help investors and traders execute their buy and sell orders for a wide range of financial instruments, including stocks, bonds, options, and more. In this capacity, broker-dealers do not take positions in the securities themselves; instead, they match buyers with sellers and charge a fee or commission for their services. 2. Dealer As a dealer, a broker-dealer participates in the market by buying and selling financial securities for its own account. This means that they maintain an inventory of various securities and are willing to buy or sell them at