commission

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.

Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

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Fee charged by broker to execute your trade. May be a composite of several fees & charges. Commission is taken into account when calculating realized gain or loss. The buy, or opening commission, is added to the cost basis and the sell, or closing commission, is deducted from the proceeds before calculating realized gain or loss, therefore commissions reduce taxable gains and increase losses. Total commission is the sum of both buy and sell commission. Commission rates take into account the quantity of the purchase, the unit price of the security (low priced stocks may have higher commission rates), and the type of investment (options have higher commissions).

Money paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale. Usually it is a percentage of the sale price--6 to 7 percent on houses, 10 percent on land.