broker

The broker acts in a threefold relation: First, in purchasing the stock he is an agent; then, in advancing money for the purchase, he becomes a creditor; and finally, in holding the stock to secure the advances made, he becomes a pledgee of it. It does not matter that the actual possession of the stock was never in the customer. The form of a delivery of the stock to the customer, and a redelivery by him to the broker, would have constituted a strict, formal pledge. But this delivery and redelivery would leave the parties in precisely the same situation they are in when, waiving this formality, the broker retains the certificates as security for the advances.

An agent employed to buy and sell or to make contracts, particularly in matters of trade, commerce and navigation, as a mere middle-man or negotiator, — he being, in general, not authorized to contract in his own name, nor intrusted with possession or the right to possession, as a factor is. In its earlier use, the word was confined to persons acting in dealings between merchant and merchant

An agent employed to make bargains and contracts between obher persons, in matters of trade, commerce, or nayigation, for a compensation commonly called “brokerage.” Story, Ag. § 28. Those who are engaged for others in the negotiation of contracts relalive to property, with the custody of which they have no concern. Paley, Prin. & Ag. 13. The broker or intermediary is he who is employed to negotiate a matter between two parties, and who, for that reason, is considered as the mandatary of beth. Civil Code La. art. 3016. One whose business is to negotiate purchases or sales of stocks, exchange, bullion, coined money, bank-notes, promissory noles, or other securities, for himself or for others. Ordinarily, the term “broker” is applied to one acting for others; but the part of the definition which speaks of purchases and sales for himself is equally importani as that which speaks of sales and purchases for othther parties, and does nat act in his own name, but in the name of thoss who employ him. 650 Ind. 204. Brokers are persons whose business it is to bring buyer and seller together; they need have nothing to do with negotiating the bargain. 68 Pa. St. 42. The difference between a factor or commission merchant and a broker is this: A factor may buy and sellin his own name, end be has the goodsin his possession; while a broker, as such, cannot ordinarily buy or sell in his own name, and has no possession of the goods sold. 23 Wall. 321, 330. The legal distinction between a broker and a factor is that the factoris intrusted with the property the subject of the agency; the broker is only employed to make a bargain in relation toit. 650 Ala. 154, 156. Brokers are of many kinds, the most important being enumerated and defined as follows: Exchange brokers, who negotiate foreign bills of exchange. Insurance brokers, who procure insurances for those who employ them and negotiate between the party seeking insurance and the companies or their agents. Merchandise brokers, who buy and sell goods and negotiate between buyer and seller, but without having the custody of the property. Note brokers, who negotiate the discount or sale of commercial paper. Pawnbrokers, who lend money on goods deposited with them in pledge, taking high rates of interest. Real-estate brokers, who procure the purchase or sale of land, acting as intermediary between vendor and purchaser to bring them together and arrange terms; and who negotiate loans on real-estate security, manage and lease estates, etc. Ship-brokers, who transact business between the owners of ships and freighters or charterers, and negotiate the sale of vessels. Stock-brokers, who are employed to buy and sell for their principals all kinds of stocks, corporation bonds, debentures, shares in companies, government securities, municipal bonds, ete.

brogger, Broccator, /. An agent employed to buy, sell, or make contracts.

(anciently BROGGER.) [L. Lat. broccator, abrocator, brocarius, and sometimes auctionarius, and correctarius; Lat. proxeneta.] One who makes a bargain for another, and receives a commission for so domg. Tindal, C. J., 6 Bing. 702, 706. An agent employed among merchants and others, to make contracts between them in matters of trade, commerce or navigation, for a commission commonly called brokerage. Russell on Factors, 3, 4. — An agent employed to make bargains and contracts between other persons, in matters of trade, commerce or navigation, for a compensation commonly called brokerage. Story on Agency, § 28. A broker is not, in general, authorized to act or contract in his own name; nor is he entrusted with the possession of what he is employed to sell, or empowered to obtain possession of what he is employed to purchase; but he acts merely as a middleman or negotiator between the parties; and in these respects he is distinguished from a fo Ktor, 2B,ik Aid, 187, 148. Ruudl <m Factors, 4. 2 Kent's Com, 622, note. The earliest definitions of this term confine the employment of brokers to dealings between merchant and merchant, exclusively. Thus, by the statute 1 Jac. I. c. 21, brokers are described to be persons employed by " merchants English and merchants strangers, in contriving, making and concluding bargains and contracts between them, concerning their wares and merchandizes, and moneys to be taken up by exchange between such merchants and merchants, and tradesmen." RtLSsell on Factors, 2. Blount. Chief Baron Comyn describes them as "persons employed among merchants, to make contracts between them, and to fix the exchange for payment of wares sold or bought." &m. 2>i^. Merchant, (C.) These definitions, however appropriate at a period when merchandize and exchange brokers appear to have constituted the only classes of this description of agents, have been very properly regarded by modern writers as too limited to mclude the various classes of brokers recognized at the present day; although in a very recent case in England, the court of Exchequer seemed disposed to abide by the ancient interpretation of the term. 1 6 Mees. d: W,ll4. The etymology of the term broker has been variously given. By some it has been derived from the Saxon broc, misfortune, as denoting a broken trader; the occupation being formerly confined, it is said, to unfortunate persons of that description. Tomlins, According to others, it is formed from the French broieur, a grinder or breaker into small pieces, a broker being one who beats, or draws a bargain into particulars. Termes de la ley. Cowell. The Latin form a Jbrocator, however, seems to point distinctly to the Sax. abrcscan (to break), as the true root, which, in the old word abbrochment (a. V.) or abroachment, had the sense of breaking up goods, or sellmg at retail. A broker, therefore, would seem to have originally signified a retailer, and hence we find the old li^ord auctionariits (q. v.) used in both these senses.