What is an official dealer in trade? How dealers differ from distributors: the difference in concepts. Who can be a dealer
Concept dealer comes from the English term dealer - trader, agent. A dealer is a participant in the marketing channel, a company that purchases products wholesale and sells them at retail or in small quantities. Dealers- agents of a manufacturer or distributor, acting as participants in its dealer network, thus, the dealer is the last link in the intermediary distribution chain and is in direct relations with the buyer.
Retail dealer- a trading company acting as an intermediary between manufacturers of goods and legal entities and individuals wishing to purchase goods.
Dealer activity– intermediary operations:
- representing the interests of the manufacturer (brand owner) in the market;
- purchase and sale of goods produced or sold by manufacturing companies or distributors.
Features of the dealer's activities are additional obligations to the manufacturing company or distributor that the dealer undertakes by publicly announcing sales prices with the obligation to execute transactions at these prices within a specified period of time. For many manufacturing companies, obtaining dealer services is the main and the only way sales of their products. Such companies do not create their own sales network, but say: “we are looking for dealers who sell our goods.” Such a scheme is certainly beneficial and convenient for the manufacturer (brand owner) and for the dealer.
Exclusive dealer is an intermediary, a dealer who has exclusive rights to represent the interests of a manufacturer or distributor in an industry, in a market segment, in a certain region.
If we talk about the activities of a dealer, then it should be remembered that dealership is a certain measure of responsibility and obligation to the manufacturing company or distributor that the dealer represents. If sales are going poorly and the manufacturer (distributor) does not receive the required sales volume, or the dealer is not actively promoting the product and trademark manufacturer on the market, then the manufacturer (distributor) can replace the dealer? citing the latter's failure to comply with the terms of the dealer agreement or purchase and sale agreement. In this case, the dealership may be given to another dealer. Almost all companies marketing strategy which are based on the principle “we are looking for dealers”, they offer terms of cooperation for the dealer, according to which the dealer earns money on a percentage of the company’s actually sold goods.
Dealer - a person engaged in the purchase and sale of any product on his own behalf and at his own expense
Information on the definition of a dealer, rights and obligations, types of activities
Dealer is the definition
Areas of activity of the company, exchange, bank, enterprises, institutions, organizations with which interaction is carried out;
Methods for studying and forecasting demand for services sold and provided;
Prospects for the development of trade and the financial and banking system;
Rules for drawing up contracts;
The procedure for establishing connections with consumers of goods and services;
Schemes of business contacts and organization of advertising activities;
Consumer properties of goods, storage rules, terms and the conditions for their implementation;
Benefits various types services;
Methods of labor organization and management;
Technical means of processing and transmission information;
Civil and labor legislation.
Dealer as a professional participant in the financial market
A dealer is any person, natural or legal, who carries out professional basis transactions with financial assets at one’s own expense (public issuance of quotations for purchase and/or sale at one’s own expense, with the assumption of firm obligations to carry out transactions at the announced quotations, including for the purpose of maintaining market liquidity), is an exchange intermediary. He acts on his own behalf and can act intermediaries between brokers, other dealers, clients. The dealer can act as an intermediary in trade purchase and sale transactions valuable papers, goods, currency.
According to Russian legislation, to carry out dealer activities and be a dealer on securities market maybe only legal. face, commercial organization received a license to carry out dealer activities from the relevant supervisory authority. Without licenses to carry out dealer activities, a legal entity cannot be a participant in trading on the stock exchange.
There are two types licenses for dealer activities:
For transactions with corporate securities;
For transactions with government securities.
To ensure the execution of transactions, the dealer must have sufficient own capital, the minimum value of which is established by law. The dealer can combine his activities on securities market with brokerage activities.
By accepting obligations to quote securities, dealers form additional liquidity stock market. When announcing public quotations, the dealer can communicate other essential conditions necessary for concluding a purchase and sale agreement: the number of securities being purchased (sold), the validity period of the announced prices, etc. A market participant, knowing the conditions of the transaction, evaluates them and, if they satisfied, concludes a deal with the dealer on the proposed terms. The dealer is obliged to fulfill this transaction. Feature Russian legislation regarding securities is that if the dealer has not offered significant terms for the transaction, except for the price, then he is obliged to enter into a purchase and sale agreement for essential conditions proposed by another participant in the transaction. If the dealer evades concluding an agreement on the client’s terms according to the quotes announced by the dealer, a claim may be brought against him to force the conclusion of such an agreement and compensate the client for losses incurred.
When announcing securities quotes, the dealer, as a rule, has information about the state of the issuer. However, this is not always available to a wide range of market participants. Therefore, the dealer is obliged to disclose information about the issuer and advise clients on the acquisition of certain securities.
By law, the dealer is obliged to:
Act solely in the interests of clients;
Provide your clients with the best conditions for executing transactions;
Provide clients with all the necessary information about the state of the market, issuers, supply and demand prices, risks, etc.;
Prevent price manipulation and coercion into transactions by providing deliberately distorted information about issuers, securities, price dynamics, etc.;
Conduct transactions for the purchase and sale of securities in accordance with the instructions of clients in priority order in relation to dealer operations, if the dealer combines his activities with brokerage activities.
The dealer is engaged in the purchase and sale of securities, making money on resale or receiving interest on the purchased securities.
Special types of dealers in the stock market
Market maker - professional participant, dealer, participant bidding exchanges, acting on the basis of a contract of agreement with stock exchange, who assumes additional obligations to submit applications and carry out transactions with securities assigned to him, in order to maintain prices, demand, offers or volume bidding securities.
For supporting liquidity in a given asset, the market maker places orders to buy and sell in a certain volume at a certain distance from each other. As a rule, the volume and distance between orders, as well as the execution time of the market maker to fulfill these obligations, are determined by the agreement with the exchange.
Sources income official market maker:
The difference between the purchase and sale prices (spread);
Return of commission from the exchange.
Dealer is
The market maker can either receive or lose. Income The market maker's leverage is maximum in the case of a calm, stationary market. The market maker may begin to suffer losses if the volume of demand for assets or offers asset strongly shifts to one side, which creates a large directional position on the balance sheet of the market maker.
In addition to the official market maker, there are also unofficial ones. They do not enter into an agreement with the exchange and do not receive a fee from the exchange for maintaining liquidity, but are simply trying to make money by differences purchase and sale prices. The advantage of an unofficial market maker is that he has no obligation to be present in the order book and can easily leave the market at a time of unfavorable conditions.
Primary dealer - legal a person that is an investment institution (a professional participant in the securities market) in accordance with the law and has entered into an agreement with the central (national) bank on bonds. Authorized to place a new issue of securities, has the right to purchase newly issued securities directly from the Treasury, and is obliged to quote prices on an ongoing basis seller and the buyer.
Forex dealer
If we take into account the work of dealers in the foreign exchange market, there is a clear difference from the position of a dealer in the stock market. Dealer on currency market- this is, which is not only a trading participant, but can also independently quote exchange rates. Unlike transactions that are serviced by brokers, bringing them to the dealer currency Forex necessarily carries out all actions independently, on its own behalf, and at the expense of its own finances. In relation to the trader, the dealer acts as a counterparty and, as a result, is interested in the client’s loss. This is the main and significant difference between a dealer in the Forex currency market and a dealer in the stock market. All trader in the Forex currency market through a dealer is based on constant play trader with the dealer. If he wins, the dealer definitely loses, or the situation is completely the opposite. When working through a dealer, all the trader’s orders regarding orders are not displayed directly, but are accepted onto the dealer’s balance sheet. The dealer has the right to set his own price for the client. The dealer always has the right to dictate his terms to the client and influence the course of trading, creating constant market dynamics. The dealer is in a privileged position, having information about the client’s bids and influencing the course of trading through his actions. Players who are well versed in the system of the foreign exchange market know that the very scheme of the dealer’s work is built on the client’s loss. Only taking this information into account can traders successfully build their trading strategy.
The international Forex currency market is represented mainly by dealers, of whom there are an order of magnitude more than brokers. This is caused by the fact that most of traders participating in the trades have small capital, the turnover of which cannot bring large commissions. This category of traders is regular customers most dealers. Brokerage companies that most often represent large financial companies and foreign banks are interesting major players with large financial capital.
Becoming a dealer on the international Forex market is quite difficult. The annual fee for the right to be a dealer on international market Forex is valued at thousands of dollars. There are a number of additional fees that entitle companies to receive permanent dealer accreditation on the international Forex market. Novice traders who have entered the international Forex market for the first time should carefully select a dealer. In practice, the dealer must provide all existing principles upon the client’s request financial policy, on the basis of which it carries out its activities on the international Forex currency market. When choosing a dealer, it is important to rely on the length of his work in the market, authority and quality of services provided.
Car dealer
A car dealer is a trading company that acts as an intermediary between vehicle manufacturers and those wishing to purchase automobile legal and individuals.
Most car dealers have a clearly marked list of the brands of cars they sell. usually has the option to either choose automobile from this list and buy it immediately, or leave a request for the required model with the required characteristics.
Dealer is
The dealer carries out pre-sale preparation vehicle and its warranty service - completion during the warranty period period scheduled technical inspections (replacement of operating materials, diagnostics, warranty repair etc.)
Other types of dealer
Philatelic dealer - a company or person who sells postage stamps and philatelic products. This also includes persons selling postage stamps for everyday use or service and stamp duty stamps for use on documents.
a person who sells works of art or performs intermediary functions in this area.
Switch dealer- a company specializing in the use of goods intended to repay balances in bilateral trade (clearing), in trade with third parties.
Sources
otvety.google.ru - Answers in Google
ru.wikipedia.org - Wikipedia - the free encyclopedia
mobilnik.ua - Mobile. UA Technologies work for you
hr-portal.ru - Community of professionals
vocable.ru - National Economic Encyclopedia
sravnenie-brokerov.ru - comparison of brokers
jurgroup.com - Elines Group
banki.ru - Banki.ru
marketch.ru - Notes from a marketer
consultant.ru - ConsultantPlus
Investor Encyclopedia. 2013 .
Synonyms:The modern Russian language is developing along with economic growth country, there was a need for borrowed words, the use of which was not necessary in accordance with the peculiarities of the economic and market systems of the Soviet Union.
What is dealership
In a dynamically developing Russian market a business lexicon was also formed. Thanks to the funds mass media people began to recognize more business-related words and finally stopped confusing a dealer with a leader. But recognition does not always mean understanding. In order to finally understand what the word dealer means, it is necessary to delve into the essence of the issue.
So, who is a dealer? Dealership refers to two main types of activity:
- A dealer is directly a seller, a distributor. Physical or entity, which purchases a large volume of products from a company (or supplier) at a minimum, discount price, and then sells it, raising the price. In other words, a dealer is a commercial intermediary.
- The dealer is one of the key players in the securities market. He enters the market with his own funds and acts directly on his own behalf. In this case, the dealer is not an intermediary. He is engaged in the purchase and sale of securities, precious metals using only your resources.
When a dealer acts as a seller, purchasing goods and services in a specific volume, he thereby establishes a sales market for the supplier. The main source of dealer profit is a percentage of the discount provided to him, which is set depending on the amount of turnover. Moreover, the manufacturer often offers the dealer to set a certain price level in order to avoid market failures.
First of all, a dealer is a partner who thinks not only about his own interests, but also about the interests of the company, since his activities are carried out not in the first person, but on behalf of the supplier or manufacturer. Its tasks include not only the purchase, delivery and sale of goods, but also providing them with a certain consumer value. There are a number of generally accepted mechanisms for this:
- Consulting qualified specialists;
- Wide range of additional services;
- A large assortment of related products included in the list approved by the dealer agreement and many others.
In some cases, the terms of the dealer agreement are quite strict: every detail is clearly specified, down to the size retail space and use of supplier symbols.
But, due to the benefits of dealership, most suppliers leave the creation of a network for selling their products in the hands of dealers. This is quite practical and profitable for both parties to the transaction.
What is an official dealer
When concluding direct contracts with manufacturing companies we're talking about about the official dealership. In these cases, the dealer himself is released from liability. All questions regarding product quality, as well as if defects are detected, are sent only to the manufacturers. The official dealer does not incur direct losses, since he acts on behalf of the manufacturer. The advantage of cooperation with an official dealer for consumers is the provided product guarantees and various related services. In auto centers this can be:
- Assistance in obtaining a car loan;
- Vehicle insurance;
- Registration.
Dealer network
A dealer network is an interconnected chain of intermediary partners who bring the manufacturer’s products directly to the consumer under his single trademark. Dealer network – the most efficient economic instrument for manufacturers, as it minimizes risks and financial costs, while expanding the sales market. With minimal costs (excluding, for example, communication costs and transportation costs), the quality of sales is steadily increasing. But the growth of dealer networks poses a number of challenges for manufacturers:
- Clarification and verification of market information received from dealers;
- Constant monitoring of dealers' activities;
- Additional resource for managing dealer networks;
- Optimization of costs supporting dealer activities.
Manufacturing companies must improve their dealer network by effectively regulating it, focusing on consumer needs.
How to become a dealer
A dealer is, first of all, a partner who invests his money and time in the business, and, accordingly, has a considerable profit.
If you have an idea to start a dealership, then if you wish, it will not be difficult. First of all, it is important to know that only a legal entity can become a dealer, so you need to take the trouble to create one.
Then you need to conclude a dealer agreement with the supplier or directly with the manufacturing company. When concluding a contract, it is important to consider the following:
- If you have the means, use the services of a marketing agency that will assess market conditions, its saturation, and real cost. If funds do not allow you to hire a marketer, you can use the necessary statistical data that is publicly available;
- Check all conditions and restrictions on the part of the supplier specified in the contract;
- Stipulate your profit and other benefits in the contract;
- Involve lawyers to review and clarify of this agreement during your first steps in dealership;
- Check the transparency of each clause of the dealer agreement (contract) as much as possible.
It is important to remember that your profit will be proportional to your sales volume. The level of competition in the dealership is quite low, so sales growth can be planned in advance. With long-term cooperation, positive recommendations appear, and this leads to more trusting partnerships, and, as a result, to an increase in your dealer discounts and bonuses from suppliers.
Perishable products need to be sold quickly because delays and storage pose too much risk. Bulky goods, such as building materials, require channels in which the product travels the shortest distance from producer to consumer through as few intermediaries as possible. Non-standard products, such as custom-built appliances, are sold directly through sales representatives. Products that require installation and/or service, say a cooling or heating system, are sold and serviced by the manufacturer itself or by exclusive dealers. Expensive equipment- generators, turbines - most often sold by the company's sales staff, and not through intermediaries.
In order to prevent the supply and sales policy of the enterprise from being completely dependent on the buyer, it is recommended to avoid the emergence of exclusive traders (buyers who have the exclusive right to purchase all products manufactured by the enterprise), strictly control the behavior of dealers (distributors) of products, their prices and terms of payment for products, as much as possible develop direct deliveries to end consumers. This is explained by the fact that if the buyer is an exclusive trader, he gets the opportunity to fully control the sale of products produced by the enterprise, which ends in the complete subordination of the enterprise to the trader, who imposes prices, payment terms and, ultimately, minimizes the profit of the enterprise.
Blocking the path that challengers may take when going on the offensive by expanding their product range and activities to fill voids and gaps in the market, signing exclusive agreements with distributors and/or providing them with significant discounts, maintaining low prices for those models that competitors most often offer, issuing more favorable installment plans to dealers and customers and reducing delivery times for individual batches, patenting possible alternative technologies or maintaining the right to use them, avoiding those suppliers who also serve competitors.
The Sigma company, as the exclusive distributor of the Royal company, must have an adequate sales structure for an active and effective search for regional dealers. Successful completion This task is largely a matter of the continued presence of the Royal brand on the Russian market.
Exclusive distribution consists of selecting a single dealer in a given region who will sell the firm's products. Such an intermediary is granted exclusive (exclusive) rights to sell these products in a certain region. Traditionally, this method is justified in small towns, as well as wherever the initial sales market (especially technically complex and expensive products) does not have a large capacity and one intermediary can cover all potential consumers.
Many manufacturers and wholesalers prefer to use exclusive channels to sell their products. Previously, we looked at an exclusive distribution strategy, when a manufacturer grants the right to trade its goods to a limited number of Intermediaries. If a supplying company requires these dealers to stop purchasing its competitors' products, the strategy is called exclusive trading. From the conclusion of such agreements, both parties benefit; the seller increases influence on traders, and they, in turn, acquire a stable source of supply and support from the supplier. However, in the United States, exclusive trade agreements are legal as long as they do not adversely affect the level of competition. Attempts to create a monopoly and coercion of participation in marketing channels are prohibited.
Exclusive sales are organized as the distribution of new products that are positioned as exclusive, expensive models. To accomplish this task, manufacturers limit the number of resellers, giving them the exclusive right to sell their product. Such a right usually extends to a specific region, and dealers are subject to the condition of refusing to sell products from competing companies. An exclusive distribution strategy allows the manufacturer to control the work of intermediaries and require them to comply with pricing, incentives and service policies. This is how new brands of cars, electronic equipment, and clothes of famous fashion designers are sold (boutique stores, specialized salons, etc.).
EXCLUSIVE DEALER - see Dealer
Entering into exclusive agreements with dealers and distributors to prevent competitors from using these distribution channels.
Semiotic foundations for creating a text advertising message. With the beginning of widespread advertising, significant changes occurred in the style of the Russian language. A new style showed itself to be a massive “pollution” of the language with words such as “exclusive distributor”, “presentation”, “dealer”, “trader”, etc. These expressions, dissonant for traditional perception, can be successfully replaced by words that have long been firmly included in the Russian dictionary language. A pompous presentation means just a presentation (by the way, some “intelligent” companies sometimes use this very word); the poorly pronounced “exclusive distributor” can be successfully replaced with a single representative.
Creation of our own dealer network, which excludes the resale of products unauthorized by the company. Establishing your own (corporate) dealer centers, showrooms, and retail stores involves large investments. In Russian conditions, the so-called contractual sales organization is especially effective, when sales conditions are regulated on the basis of agreements concluded between the manufacturer and a legally independent dealer. In this regard, exclusive dealership has become most widespread. It benefits both parties. The manufacturer receives a reliable sales channel for products without the need to invest significant funds in its development, and dealers receive a constant source of supply and support from the manufacturer.
Manufacturers differ in their ability to attract qualified intermediaries to participate in this channel. Some people don't have any problems. For example, Toyota was able to attract many new dealers to sell its new Lexus model. In some cases, it is possible to attract the required number of candidates by promising to provide them with the right of exclusive or selective distribution.
Discussions with the company's dealers made it clear that there was some dissatisfaction with current trends. The market became increasingly competitive, profits were shrinking, and many dealers felt that specializing in consumer electronics did not have a good future. As for cooperation specifically with MEIR, there was also some dissatisfaction here, since many dealers felt that they had lost belonging to some “special club” that they had previously belonged to. MEIR now cooperated with 116 dealers operating throughout the country, but there was a feeling that they were being treated unequally. MEIR has always followed the traditional Japanese practice of negotiating with each dealer independently and confidentially. As a result, significant differences arose in the terms of doing business with different dealers, as a result of which an aggressive Class B dealer could achieve better conditions than the larger Class A dealer. At the bottom of the list, the small independent electrical dealer was forced to operate on a cash-on-delivery basis, while the large discount chain stores received exclusive benefits. There was a feeling that such exclusive benefits were detrimental to the brand's image. At the same time, they led to anxiety among dealers, who felt the futility of their efforts to compete with chain stores and became much more sensitive to the profit differences inherent in the proposed terms. They proposed allowing all dealers to start from the same starting point, which would enable them to compete more effectively with large networks stores and thus curb the growth of their influence in the market.
Dealers and distributors can also be exclusive in the case where the manufacturer considers it inappropriate for competition between sellers of its products in a particular sales region. A dealer can also be an authorized dealer (or authorized dealer), that is, receiving special rights and support from the manufacturer (in terms of advertising, after-sales service, etc.). The type of distribution intermediary primarily depends on the type of product distribution in the market chosen by the manufacturing company.
For example, the Japanese company Duplo, which produces digital duplicators - mini-printing houses, has a network of exclusive distributors around the world. In the Russian Federation, these products are promoted by the Tacoma company (authorized dealer), which, with a long-standing cooperation with the Japanese manufacturer, carries out all deliveries to the Russian Federation through a regional distributor based in London (UK).
Manufacturers are free to choose dealers, but their right to refuse the services of an intermediary is limited to a certain extent. In general, sellers can stop working with dealers if the latter fails to comply with the terms of their contracts. But they do not have the right to refuse the services of intermediaries in cases where, for example, they refuse to participate in legally dubious arrangements (exclusive dealership, agreements on forced assortment of supplies).
The supplier company may enter into various agreements with members of the marketing channels, but it must follow certain legal and ethical standards, not forgetting the rights of the dealer. Most legal conflicts are associated with the practice of exclusive dealership or exclusive trading territories, agreements on forced assortment.
DEALER - a trade or exchange intermediary, acting, as a rule, on his own behalf and at his own expense. supply chain D occupies a position closest to the end consumers D, who is the only representative of the company in a given region and endowed with exclusive rights to sell its products, is called exclusive D, cooperating with the company whose products he sells on a franchise basis is called authorized or authorized
Pneumax S.p.A. represented in more than 60 countries on all 5 continents. Own branches in Europe (including Russia), Southeast Asia, Latin America, Italy, dozens of exclusive distributors and dealers around the world guarantee the availability and efficiency of service for the equipment sold.
Exclusive resellers symbolize a sales policy in which only one dealer in a specific geographic region has the right to sell a given manufacturer's products. Often, car dealers enjoy exclusive sales rights in their regions. Large holdings, for example JSC NTMK, supply products exclusively through trading house. This allows the holding's main producers to concentrate their efforts on production, and the trading operator to focus on product sales.
IS O experts have chosen a type of exclusive sales policy, in which only one dealer in a certain geographic region
Dealer- company or individual, a representative between the manufacturer and the consumer. A market participant who executes purchase and sale contracts on his own behalf.
The concept dealer is used in the following areas:
- trade - activity in the acquisition of products and their subsequent sale on one’s own behalf and at one’s own price;
- stock and foreign exchange market - commercial or state organization, which formalizes the purchase and sale of shares in its own name and at its own expense.
The term dealer comes from the English word merchant, agent. A dealer is a participant who purchases goods wholesale and sells them in small quantities or at retail.
Dealer- the last intermediary link in the chain of services and goods, and is in direct relations with the purchaser. The work of an intermediary is determined by representing the interests of the manufacturer and the purchase and sale of goods manufactured by the company.
The work of the dealer is regulated by an agreement drawn up between the manufacturer and the intermediary. The agreement regulates the rights and obligations of the parties. The dealer has obligations to the company that produces the product.
A feature of the intermediary’s activities is additional obligations assumed by publicly announcing the cost of the service. Or the sale of goods with obligations to execute transactions at agreed prices within a specified period of time. For many manufacturers, dealer services are the only way to sell products. Companies are looking for dealers to sell goods.
Types of dealers
The type of dealer activity is divided depending on the area in which the intermediary operates.
Currency dealer- a player in the foreign exchange market. The main intermediaries are central and commercial banks. A central agency buys or sells currency to regulate the rate of national funds.
Bank-dealer- a commercial institution offering securities on the market.
Broker- a company with the functions of a dealer and broker on the stock exchange.
Primary dealer- a company authorized to place a new issue of securities.
Exclusive dealer- intermediary involved in the sale and technical maintenance products from one manufacturer.
Investment agent- a legal entity associated with a company and engaged in trading in stock market in the interests of the represented company.
Subdealer- agent of the intermediary, conducting activities on his behalf and at his expense.
There are also art dealer- a legal entity operating in the field of art.
Currency dealer
Basically, commercial banks or joint-stock organizations with large capital act as foreign exchange dealers and sell foreign currency values. - operations of currency intermediaries.
The foreign exchange dealer is divided into two groups:
- primary intermediary - large banks supporting the market in terms of rates and liquidity;
- official dealer - intermediaries between primary employees and investors when processing transactions on the bond market.
Dealer bank
The dealer bank arranges the purchase and sale of bonds at its own expense and on its own behalf. This dealer must meet the standards of the Central Bank to conduct activities in this area:
- received license of a stock market participant;
- there are no sanctions or any payment arrears;
- equity capital in the amount of at least 1 million euros;
- break-even activity for the last reporting period;
- membership in the organization of dealers on the stock market.
Dealer-broker
A broker is an exchange participant who manipulates securities on behalf of the company and at its expense.
A broker-dealer combines the functions of a broker and a dealer at the same time. That is, the company can act on behalf of the represented financial institution and on its own behalf without any intermediaries.
Primary dealer
The primary dealer has the right to submit bids for the placement of short-term government bonds (GKOs) at the auction. Primary intermediaries set firm GKO quotes and keep them in the bidding system.
Dealers have the right to use the credit resources of the Central Bank through repo operations - the purchase of bonds with the obligation to resell them. The main bank buys securities from the primary dealer with subsequent sale within up to 2 days at a price fixed at the auction. The difference in the cost of securities is the credit interest received by the dealer.
Exclusive dealer
An exclusive or official dealer receives products directly from the manufacturer. The dealer has the right to set competitive prices on his own behalf in the market. He receives from the company the right to trade in the territory of his choice.
An official dealer represents the interests of a foreign company in the country.
The dealer formalizes the entire issue of bonds, shares and other securities and buys them at a single price and sells them at market value.
An investment dealer has the right to buy and sell bonds on behalf of the represented company for a commission.
Art dealer
A company that buys or sells art. An art dealer represents artists and contacts galleries, museums and collectors whose interests correspond to the works of the represented artists.
Art dealers can anticipate market aspirations or influence market tastes.
