What do dealers primarily do in securities trading?

Dealers primarily buy and sell securities for their own accounts, which is a fundamental aspect of their role in the securities trading process. They act as principals in transactions, meaning they own the securities they trade and profit from the difference between the buying and selling prices, known as the bid-ask spread. This activity helps provide liquidity to the markets, making it easier for other market participants to buy and sell securities efficiently.

While offering advisory services, facilitating transactions, and managing public offerings are essential functions within the financial markets, they are more characteristic of investment advisors, brokers, and underwriters, respectively. These roles do not define the primary activity of dealers, whose main focus is engaging in trading activities on their own behalf.