Business A to Z

Commission


In business, it is the fee paid to a broker to execute a trade, based on number of shares, bonds, options and/or their dollar value. In 1975, deregulation led to the creation of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a full staff of analysts who follow specific industries. Discount brokers simply execute a client's order -- and usually do not offer an opinion on a stock. Also known as a round-turn. In real estate, an agent usually receives 6 to 7 percent of the sale price on houses and 10 percent of the sale price on land.


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