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 Full-Service Broker?3 Views
Finance a la shmoop what is a full-service broker? full-service
"everything" close relative of the bulge bracket remember those guys want
to trade stocks here at this full service brokerage well you got it [Clipboard appears with checklist]
how about trading some bonds yep need investment advice hoo you bet we got rap
accounts here too does it have to be good advice well it's different gonna
retire well they'll suggest Goodyear or fire stone or Michelin if they're you
know socialist and European gonna quit working and play golf all day well then [Man playing golf]
a full service broker has advice for that as well want tax planning yep
referrals to other professionals like estate planning lawyers and that kind of
stuff got a kid heading to college in a decade all right well it's time to talk
529 savings plan got a grandparent dying soon whoo time to talk IRA distributions
and charity need Warriors tickets yeah what well they're full service they just
build they'll charge you for it but they're full full something [State Warriors basketball team playing a game]
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