One party authorized to act on behalf of another.

The other is known as the principal, for whom activities such as placing transactions for securities or selling and serving an insurance policy are performed. Authorization entails not only the permission of the principal but also licensing obtained through the appropriate education and application process. Unlike a dealer, an agent is merely a proxy and does not assume any of the risk of the transactions. Agents are compensated for their work in the form of fees or commissions. Related Words

* Dealer
* Proxy statement
* Risk disclosure document
* Principal risk