BROKER (originally one who uses, manages, handles, 011G. bil/then, AS. brucan, ME. brukcn, broken, Ger. brauchcn, to use. For a similar development, cf. Ger. Makter, broker, make/it, makeln, to net as broker, allied to Dutch maken, to make; also Ger. handeln, to deal, ba• gain, from Hand, hand—le. front 'handling').
An agent employed to make bargains and con tract: between other persons in matters of trade. commerce. and navigation for a com pensation. commonly called brokerage. When a broker is employed to buy or sell goods, he is not intrusted with the custody or pos session of them, and is not authorized to buy or sell in hi: own name. in this re spect he differs from a factor: and lie dif fers from an auctioneer in two particulars: (a) A broker may buy as well as sell. but an -auctioneer can only sell; (b) a broker cannot sell personally at public auction, for that is the appropriate function of an auctioneer; hut he may sell at private sales, while an auctioneer -does not. A broker is strictly a middleman, or
intermediate negotiator between the parties: and for sonic purposes lie is treated as the agent of both parties, but primarily lie is deemed merely the agent of the party by whom he is originally employed. As soon as the negotiation is concluded lie makes a memorandum thereof, a copy of which he gives to each party. If the transaction is a sale, these copies are called bought and sold notes. Brokers are of va rious sorts, such as bill and note brokers, ex change brokers. insurance brokers, merchandise brokers, pawnbrokers. real-estate brokers. ship brokers, and the like. As a rule. the name of each class fairly indicates its peculiarities. Per haps a few words should be added concerning two classes, in addition to the pawnbrokers, whose functions and liabilities will be consid ered in a separate article. See PAWNBROKING.