Final answer:
An agent is synonymous with a broker, who acts on behalf of a customer, as opposed to a dealer, who trades on their own account. Agents understand and serve a client's needs while executing trades or transactions.
Step-by-step explanation:
An agent in the context of business and finance is synonymous with the term broker, and it means purchasing or selling for a customer. Unlike a dealer, who deals with securities for their own account, an agent or broker acts on behalf of a client. The role of an agent entails understanding the client's needs and acting in the client's best interest to execute trades or transactions.
By definition, a broker facilitates transactions between a buyer and a seller for a commission or fee when the deal is executed. A broker thus often acts as an intermediary, unlike a dealer who directly buys and sells financial instruments for profit on their own account. The distinction is essential in finance and investment since it affects the nature of the transactions and the responsibilities of the financial professional involved.