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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use