Which statement about brokers is accurate?

• A. Brokers are independent intermediaries who represent neither party.
• B. Brokers are employed by producers to close deals.
• C. Brokers guarantee prices for buyers.
• D. Brokers handle only online trades.

Answer: (A)

Brokers act as independent intermediaries who connect buyers and sellers without representing either side. Because they don’t align with a single party, they can facilitate negotiations and help both sides reach terms that work, rather than pushing a deal to favor one party. Prices in the market are determined by supply and demand, and brokers do not guarantee those prices—they provide the structure, access, and information to enable a deal but the final price is set through negotiation. They’re not employed by producers to close deals; they operate independently and earn a fee for bringing buyers and sellers together. And their work isn’t limited to online trades—their role spans in-person meetings, phone calls, and other channels across different markets.