Brokers actually own the securities they buy and sell on the floor of the exchange.
While "brokers" in general act as agents for buyers and sellers, those who actually take title to and maintain inventories of shares are referred to as "specialists," "dealers," or more recently, "designated market-makers."

Question

Quizplus · Accepted Answer

Brokers do not actually own the securities they buy and sell on the floor of the exchange. They act as agents for buyers and sellers of securities. Specialists, dealers, or designated market-makers are the ones who take title to and maintain inventories of shares.

Brokers Actually Own the Securities They Buy and Sell on the Floor