• Dealers buy and sell securities at their own expense.

  • Dealers are important players in the market as they act as market makers, create liquidity and contribute to the long-term growth of the market.
  • Dealers must be registered with the Securities and Exchange Commission (SEC) and must comply with all state requirements before they can begin operations.
  • Dealers are different from traders and brokers - the former buy and sell at their own expense, while the latter do not trade for their portfolio.
  • Dealers are regulated by the SEC.