Carrying brokers are brokers, or even brokerage firms, that tend to operate in the back, carrying out tasks for deals other brokers make.
They can offer a number of services, such as settlements and various custodial services. They want to focus on the administrative tasks, not so much the selling to investors. The introducing broker does that. The introducing broker seeks out investors and manages their portfolios.
You know how people will say they “know a guy”? That guy is the introducing broker.
But the introducing broker may not have time to send out the payments on these investments, track each share, and send out the statements of each action to the investors. That’s where the carrying broker comes in. The relationship between these two sides of brokers is very common...in fact, Goldman Sachs and J.P. Morgan (Chase bank) offer carrying brokerage services.
Often, carrying brokers are 24-hour, full-service groups that offer the use of the most sophisticated software and reporting tools...tools the smaller introducing brokers might not be able to afford, or be able to use to full capability. This arrangement lets people really excel at what they’re good at.
An introducing broker might be the definition of a social butterfly, the belle of every ball, everyone’s financial Prince Charming, whichever strikes your fancy. This lets the belle go to every ball, make the connections, answer questions, and educate their clients, without having to tackle the mountain of paperwork on their own. They can really be “the guy.”
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Finance: What is a Broker-Dealer?16 Views
Finance a la shmoop.. what is a broker-dealer? It's one of [Homeless guys holding help signs]
these guys who's making less than minimum wage right no that'd be a broke
dealer and you won't find too many of them in Lake Tahoe but yeah a broker is [Man talking about broker-dealers in Lake Tahoe]
just someone who takes a commission for selling stuff they live wherever there
are transactions in cars, boats, planes, homes and securities like stocks and
bonds so yeah it's a broker - dealer sort of like a writer-director
sexual deviant in Hollywood... Key takeaway here the broker dealer brokers
securities ie they take a commission and they deal in securities like they carry [People playing blackjack]
their own inventory of ten million shares of Amazon this week's selling
them for twelve hundred ninety dollars and 32 cents a share and buying them for
twelve hundred eighty eight dollars seventy nine cents a share making a
spread of...
equals a dollar fifty-three a share the dealer makes a spread of a buck fifty [Dealer and market transferring cash and stock]
three every time she trades a share of the Walmart killing behemoth yeah it's
sort of a Goliath slaying Goliath story there that Amazon Walmart thing we're
watching it so think about broker-dealer making money on both sides of the trades
that's the way to go if you're going to Wall Street make money no matter what [Man walking on Wall Street]
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