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Brokerage Firm  

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A brokerage firm is a SEC registered outfit that acts as an intermediary between a buyer and seller in the securities market. A brokerage firm can either manage its own account, said to be acting as a "principal", or transact on behalf of clients, said to acting as an "agent". This is the basic service provided by any brokerage firm.

Some brokerage firms provide online trading facilities and still some others provide asset management accounts or portfolio management services and advisory services.

Related Terms: Brokerage Account - Brokerage Commissions - Online Stock Broker

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