Why is someone who holds the money often times called a “Broker”?
The above question was thrown innocently at me during one of my visits to a dear friend who happened to have these cute kids that were always excited running around the house and love it much when they always interfere and meddle with the conversations of the elders. Obviously, one of them was the culprit to this rather intriguing question.
Agreeing initially to the possibility of giving the kid of what he wanted, I readily thought of first analyzing the narrow situation that I’m currently engaged. I plunged deeply to the pattern that takes the underlying terms by drawing out its meaning and possibly arguing my way to satisfaction…
Our handy and on line encyclopedia would further define a broker to be someone or a person who usually acts in between the seller and the buyer on a certain or particular business transaction. The broker is usually the party who mediates the principals (buyer and seller). In the corporate world, a broker likewise means a person who is in charge with the buying and selling of stocks or shares for a particular client and is at times in charge also of the handling of financial portfolios of a client or a businessman. On a lighter and less jargon drawn terms, a broker is simply an agent.
The idea of calling such a person as a broker would particularly rely and lies on the manner by which he works, which literally having to “break”, as most mediators and referees would normally act or do, both ends or both parties to a particular activity. The Broker “breaks” and goes in between these opposite parties, mediates and goes in between so that the implication of possible conflicts and angles of miscommunications are iron out in pursuit of a well executed business transaction.
A broker most of the time holds such amount of money but it’s either his or his clients’. If he owns it, it might be possible that it is his commission or compensation for carrying out fairly, properly mediating or “breaking” well a business transaction. He isn’t broke at all then.