Broker, an agent employed to make bargains and contracts between other persons, in matters of commerce, for a compensation commonly called brokerage. A broker usually confines his attention to one particular market, as wool, sugar, or iron, and the special knowledge he thus acquires renders his services useful to the general merchant, who has no such intimate acquaintance with the trade. The broker is strictly a middle-man, or intermediate negotiator between the parties, finding buyers or sellers as required. He does not act in his own name, nor has he generally the custody of the goods in which he deals, thus differing from a factor, and he cannot sell publicly like an auctioneer unless licensed as such. He is treated as the agent of both parties, though primarily he is deemed the agent of the party by whom he is originally employed. Besides ordinary commercial brokers, there are several other sorts, such as Stock-brokers (see STOCK-EXCHANGE), Share-brokers, Ship-brokers, Insurance-brokers, and Bill-brokers (q.v.). Persons who deal in old furniture and sell and dislrain furniture for rent are also called brokers, although differing entirely in their occupations from the preceding commercial agents. The business of a Pawnbroker (q.v.) is also of a different nature.
Brokers in London were formerly admitted by the lord mayor and aldermen, paying £5 on admission, and a like sum annually, under a penalty of £100. They were termed sworn or licensed brokers, and a list was kept by the city of brokers admitted, and of those who had been convicted of fraud or disqualified (33 and 34 Vict. chap. 60). The corporation has ceased to grant licenses or exact fees.
By the Larceny Consolidation Act, 24 and 25 Vict. chap. 96, sect. 76, it is enacted that any person who, being a banker, merchant, broker, attorney, or agent, and being intrusted for safe custody with the property of any other persons, shall in any manner convert or appropriate it to his own use, shall be guilty of a misdemeanour, and be liable to be kept in penal servitude from five to seven years, or to suffer some other punishment, by imprisonment for not more than two years, with hard labour or confinement. See FACTOR.