A broker is an agent or firm whose primary function is to act as an intermediary, bringing a buyer and a seller together to facilitate a transaction. Brokers do not take ownership (title) of the goods or assets being traded; they earn a commission or fee for their matchmaking and negotiation services. This role is distinct from other intermediaries who may buy and hold inventory. The term "broker" precisely describes the function of bringing two parties together for a deal.

A. Dealer: A dealer acts as a principal in a transaction, buying goods for their own account and selling from their inventory, rather than simply connecting two other parties.

B. their-party specialist: This is a typo for "third-party specialist," which is a broad, general category. "Broker" is the specific and more precise term for the function described.

C. public surplus: This refers to a source or channel for acquiring goods (e.g., from government disposal), not an intermediary role that facilitates transactions between a buyer and seller.

1. Rust

J.

& Hall

G. (2003). Middlemen in Limit-Order Markets. Journal of the European Economic Association

1(2/3)

560-569. MIT Press. This paper discusses the role of intermediaries

defining brokers as agents who facilitate trades for others. Available via JSTOR and university libraries.

2. Foucault

T.

Kadan

O.

& Kandel

E. (2005). Limit Order Book as a Market for Liquidity. The Review of Financial Studies

18(4)

1171–1217. Oxford University Press. Page 1172 distinguishes brokers

who "transmit their customers' orders

" from dealers

who "trade on their own account."

3. MIT OpenCourseWare. (2008). 15.023J Global Climate Change: Economics

Science

and Policy

Lecture 18: Carbon Markets. Massachusetts Institute of Technology. The lecture notes define brokers as intermediaries who "facilitate trades between buyers and sellers" without taking a position themselves. https://ocw.mit.edu/courses/15-023j-global-climate-change-economics-science-and-policy-fall-2008/resources/mit15023jf08lec18/