Agency

In context of general equities, buying or selling for the account and risk of a customer. Generally, an agent, or broker, acts as intermediary between buyer and seller, taking no financial risk personally or as a firm, and charging a commission for the service. The broker represents a customer buyer/seller to a customer seller/buyer and does not act as principal for the firm's own trading account. Antithesis of principal. See: Dealer.

A legal relationship in which one person or organization is authorized to act in behalf of another, who is called a "PRINCIPAL".

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A governmental subdivision incorporated to perform a public service. May or may not have taxing authority. Most bond issuing agencies pledge only specific revenues to the repayment of bonds which they issue. (Such as Tennessee Housing Development Agency bonds which are payable solely from revenues received from their mortgage portfolio.) See also authority.