BROKERAGE HOUSE Meaning and
Definition
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A brokerage house, also known as a brokerage firm or a securities firm, is an institution that facilitates buying and selling of financial securities, such as stocks, bonds, mutual funds, and derivatives, on behalf of their clients. It is a company that acts as an intermediary between buyers and sellers in the financial markets.
The main role of a brokerage house is to provide a platform and services to investors and traders who want to execute trades in the financial markets. These firms typically have a team of licensed brokers or registered representatives who are authorized to place trades on behalf of their clients. They also offer various investment products, research, and advisory services to assist investors in making informed decisions.
Brokerage houses earn revenue through commissions or fees charged for executing trades on behalf of their clients. Additionally, they may provide other services like investment advice, portfolio management, margin lending, and underwriting new securities issues.
These firms play a crucial role in the functioning of the financial markets by facilitating liquidity and efficiency. They act as a bridge between buyers and sellers, ensuring smooth transactions and providing market depth. Brokerage houses can be independent entities or subsidiaries of larger financial institutions, such as banks or insurance companies.
In summary, a brokerage house is a financial institution that enables individuals and institutional clients to buy and sell financial securities, offering a range of services and expertise to assist investors in managing their investments.
Common Misspellings for BROKERAGE HOUSE
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Etymology of BROKERAGE HOUSE
The word "brokerage house" is composed of two parts: "brokerage" and "house".
The term "brokerage" comes from the noun "broker", which originated in Middle English as "brocour", from the Anglo-Norman French word "brocour" or "brocheor". It was derived from the Old French word "brocheor", meaning "small trader" or "retailer". The Old French word itself was derived from the medieval Latin word "brocarius", which referred to a peddler or a dealer.
The term "house", in this context, refers to a place of business or enterprise. It comes from the Old English word "hūs", which has Germanic origins. Over time, it evolved into the Middle English word "hous" before becoming the word we use today.
Similar spelling words for BROKERAGE HOUSE
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