Broker-dealer -

The hyphenated name reflects the two distinct capacities in which these firms operate:

Because they handle vast amounts of public money, broker-dealers are heavily regulated to ensure market integrity and investor protection: Broker-Dealer (B-D) Explained: Roles, Types & Functions broker-dealer

: They assist companies in raising capital by helping to sell new issues of stocks or bonds to the public. The hyphenated name reflects the two distinct capacities

: 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 are responsible for the safekeeping of client funds and securities. Regulation and Oversight