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CommissionA percentage of the sale price which the selling party receives. This can be an estate agent in relation to a property, a broker selling you a mortgage or other products and even a dorr to door salesman selling you a nice new set of double glazing.CommissionCompensation due a real estate broker for acting on behalf of the principal.CommissionPayment made to a stockbroker when you buy or sell shares. In general, the level of commission you pay will either be a flat fee (possibly going up in stages according to the size of the deal) or a percentage based on the size of the deal.An important determinant of the amount of commission you pay will be the kind of service you get from your broker.Discretionary : the broker has general discretion as to how he manages your portfolioAdvisory: the broker will contact you to suggest changes in the composition of your portfolio, but he does not have the authority to trade on a completely discretionary basis.Execution only: the broker's primary function is to execute the buy/sell instructions which you give him. He does not give advice either proactively or at your request.As a rule, execution only brokers are the cheapest for transaction costs.Similar MatchesCommission houseCommission houseAnother term used to describe brokerage firms because they earn their living by charging commissions. Futures Commission MerchantFutures Commission MerchantIn the US, an individual or organisation accepting orders to buy or sell futures contracts or futures options, and accepting payment for his services. FCMs must be registered with the CFTC and the NFA. Securities and Exchange Commission RulesSecurities and Exchange Commission RulesRules enacted by the SEC to assist in the regulation of US financial SEC. Underwriting CommissionUnderwriting CommissionThe fee investment bankers charge for underwriting a security issue. Indemnity commissionIndemnity commissionWhere a life company pays commission to an agent, the company does so on the proviso it will be entitled to take back some or all of the commission if the policy is cancelled within a given period. Also known as 'clawback'. Further SuggestionsSecurities and Exchange CommissionFederal Maritime Commission (FMC) Split commission Fee and commission compensation Commission broker International Organization of Securities Commissioners Commodity Futures Trading Commission (CFTC) Securities & Exchange Commission (SEC) Futures commission merchant (FCM) Commodity Futures Trading Commission Commission house |
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