An investment industry participant who facilitates trades by buying when others sell is known as a?

A participant in the investment industry who facilitates trades by buying when others sell is referred to as a dealer. Dealers act as intermediaries in the market and maintain an inventory of securities. They provide liquidity to the market by purchasing securities from sellers and selling them to buyers, essentially making a market for those securities. This ability to buy when there is selling pressure allows them to manage inventory and profit from the bid-ask spread, which is the difference between the buying price and the selling price.

In contrast, brokers primarily connect buyers and sellers and do not take ownership of the securities being traded. They earn their compensation through commissions rather than holding securities themselves. Traders typically refer to individuals or entities that engage in buying and selling in the market, often focusing on short-term profits. Custodians, on the other hand, are responsible for safeguarding and managing assets on behalf of others but do not engage in trading activities. Therefore, the definition of a dealer aligns perfectly with the description provided in the question.