legal definition of broker
Broker means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others. Each country and state has its own broker regulations. Broker usually acts as a liaison between a buyer and a seller, whether it is a house, an insurance policy or a business purchase. All states require a broker to be a licensed professional. To obtain a license a potential broker must pass a written test. A broker owes a fiduciary duty to the owner/or buyer to act according to the owner's/buyer's instructions, and in the best interest of the owner, notwithstanding the manner in which the broker is compensated.