Investor Glossary-commissionInvestor Glossary-commissionInvestor Glossary-commissionInvestor Glossary-commissionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Commission

The HTML to link to this page
 

A commission is a fee paid to a third party in exchange for assistance in completing a financial transaction. A commission may either be a percentage of the value of the transaction, or a flat fee. In financial markets, a commission is commonly associated with stock transactions. Advances in technology have greatly reduced commission rates. Discount brokers achieve low commission rates through automation of trading and customer service. Brokers specializing in high-volume accounts may reduce commission rates by offering ECN rebates to traders providing liquidity. Stock and foreign exchange brokers may offer so-called zero commission trading. This may be a false economy for thrifty traders; instead of making money on a commission, such brokers make their money by either widening the spread or selling the right to execute the order to a market maker who can widen the spread.



Rate this commission definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use