Brokered market definition
/What is a Brokered Market?
A brokered market is a marketplace in which an intermediary searches for and brings together buyers and sellers. This intermediary does not use its own funds to maintain an inventory for sale to other parties. The broker profits from the price spread that buyers are willing to pay and at which sellers are willing to sell, or through a broker fee. In general, brokered markets increase the number of buyers and sellers, and improve overall liquidity. These markets are most effective when some expertise is required to settle transactions.
Example of a Brokered Market
For example, a broker uses buy and sell orders to match up buyers and sellers of securities. Or, a car broker acts on behalf of a buyer to locate car dealers who are willing to sell vehicles at the price designated by the buyer. As a third example, a broker can assist in finding prospective buyers for a business owned by a client.