Sort of a schmoozing broker. "Client-Bob, meet my other broker partners at the brokerage here..."
Most brokers are handling client accounts. They answer phone calls from clients who want to buy or sell, or who know why their investments are not making them money. (Or are making them money; both count in this case.)
An introducing broker doesn't do all the dirty work. Instead, they had the prior relationship with Client-Bob, owner of Bob's Land O' Fun and Botox. But the introducing broker either was full-up for clients, or Client-Bob had specific needs that one of the introducing broker's partners had a better feel for. Like...they spoke Russian. Or they knew complex estate planning well. Or they specialized in internet IPOs, which were the only thing that Client-Bob wanted to invest in.
So the introducing broker sends Client-Bob to someone else, and is owed a big fat favor down the line. Welcome to Wall Street Backscratching 101.
Related or Semi-related Video
Finance: What is a Floor Broker v. Floor...13 Views
Finance allah shmoop What is ah floor broker versus a
floor trader All right Well here's a floor fixer and
here's a floor broker but okay Shocking a floor broker
Brokers stocks on the floor of a stock exchange Right
Well here's the new york stock exchange here's its floor
These guys down here they're floor brokers That is they're
trading stocks and other securities on behalf of their clients
Basically this is the scene from trading places with eddie
murphy Great old film Old rich white guys in a
building up here Call down to their guys on the
floor who execute their bidding All right well it's a
bunch of brokers all trading their clients stocks right here
and here And here and here and here all over
the world within among each other So that money is
well pushed around thoroughly like that Cato's in grandma's hash
browns recipe Note that a floor broker is different from
a floor trader Who although he or she works on
the floor of an exchange also makes trades as a
principal for his or her own account So yeah that's
floor broker No jackhammer required Thank you very much Go
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