Business and Personal Finance Dictionary

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• BROKERAGE FIRM
  
  Brokerage firms are licensed by the Securities and Exchange Commission (SEC) to buy and sell securities for clients and for their own accounts. When a brokerage firm sells securities it owns, it is said to be acting as a principal in that transaction. Firms frequently maintain research departments for their own and their clients' benefit, and increasingly they provide a range of financial products and services, including financial planning, asset management, and educational programs. Online brokerage firms, discount brokerage firms, and some traditional full-service brokerage firms encourage customers to trade electronically and provide a wealth of investment information on their websites.
  
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