Dealership is a widespread professional sphere in modern society. But who is a dealer, and what the activity is related to is an ambiguous question, since the word "dealer" can have different meanings depending on the context.
The word "dealer" is of English origin and stands for agent, trader. This term refers to two unrelated types of economic activity. First of all, a dealer is a natural or legal person who purchases goods in bulk from a manufacturer and then sells them at retail. In our country, dealership is most common in the automotive and cosmetic industries. The dealer is engaged in the promotion of goods or services in the local market. The trade dealer enters into an agreement with the manufacturer, after which he brings the product or service to the buyers on his own. At the same time, this form of cooperation is extremely beneficial for both parties: the manufacturer increases sales, develops new markets, and the dealer, producing absolutely nothing, can receive high profits. The dealer's profit is made up of the difference between the retail prices at which he sells the goods or services and the purchase prices. Also, a dealer is an investor who is a professional participant in the securities market and makes transactions on his own behalf and at his own expense. According to the legislation of the Russian Federation, only a legal entity can be a dealer. The dealer must carry out exchange activities on the basis of a license. The peculiarity of dealer trading on the stock market is that the dealer publicly announces the prices and terms of purchase / sale of securities and undertakes obligations to fulfill the agreed conditions of each specific transaction. The activity of a stock dealer is difficult for people who are not related to the stock market to understand. Dealers in our country can combine their activities with a brokerage. The dealer's goal is to buy securities at a lower price and sell them at a higher price, acting in their own interests or in the interests of the client. The profit of an exchange dealer is made up of paid consulting, commissions and spread. The spread is the difference between the buying and selling prices of a security.
