Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back once again with Nicole Riley, one of our audit senior managers and one of the faces of PKF Texas’ broker-dealer team. Nicole, welcome back to the Playbook.
Nicole: Great to be here.
Jen: So, broker-dealer, what is that?
Nicole: So, a broker-dealer is a highly regulated company that traditionally buys and sells securities. That’s really where the name comes from is because they can be selling and buying for a customer where they’re the agent or the broker, or they could be buying and selling for their own accounts where they’re the principal in the transaction or a dealer, hence, broker-dealer.
But really the modern broker-dealer is doing more than just buying and selling securities, they publish investment research, they are helping companies raise capital, they’re helping clients find investments and place their money and they’re also providing investment advice.
Jen: Okay, so you mentioned highly regulated – what does that actually look like?