[kuh-mish-uh
n] 
| 1. | the act of committing or giving in charge. |
| 2. | an authoritative order, charge, or direction. |
| 3. | authority granted for a particular action or function. |
| 4. | a document granting such authority. |
| 5. | a document conferring authority issued by the president of the U.S. to officers in the Army, Navy, and other military services, and by state governments to justices of the peace and others. |
| 6. | the power thus granted. |
| 7. | the position or rank of an officer in any of the armed forces. |
| 8. | a group of persons authoritatively charged with particular functions: a parks commission. |
| 9. | the condition of being placed under special authoritative responsibility or charge. |
| 10. | a task or matter committed to one's charge; official assignment: The architect received a commission to design an office building. |
| 11. | the act of committing or perpetrating a crime, error, etc.: The commission of a misdemeanor is punishable by law. |
| 12. | something that is committed. |
| 13. | authority to act as agent for another or others in commercial transactions. |
| 14. | a sum or percentage allowed to agents, sales representatives, etc., for their services: to work on a 20 percent commission. |
| 15. | to give a commission to: to commission a graduate of a military academy. |
| 16. | to authorize; send on a mission. |
| 17. | to give the order that places a warship, military command, etc., in a state of complete readiness for active duty. |
| 18. | to give a commission or order for: The owners commissioned a painting for the building's lobby. |
| 19. | in commission,
|
| 20. | on commission, paid entirely or partially with commissions from sales one has made or for work one has done: The salespeople who are on commission earn 6 percent of the total amount they sell. |
| 21. | out of commission,
|
| com·mis·sion (kə-mĭsh'ən) n.
[Middle English commissioun, from Latin commissiō, commissiōn-, from commissus, past participle of committere, to entrust; see commit.] com·mis'sion·a·ble adj., com·mis'sion·al adj. |
A fee paid to a broker or other financial agent for negotiating a sale. The fee is based on a percentage of the sale price.
Commission
A service charge assessed by an agent in return for arranging the purchase or sale of a security or real estate. The commission must be fair and reasonable, considering all the relevant factors of the transaction. Commissions vary widely from broker to broker.
Investopedia Commentary
The brokerage with the lowest commissions is not necessarily the best one - you get what you pay for. Discount brokerages offer no advice, which can prove to be troublesome for many rookie investors. On the other hand, full-service brokerages offer a more personalized service, but commissions are much higher.
Related Links
Brokers and Online Trading
Settling Wrap Fees
See also: Analyst, Broker, Discount Broker, May Day, Real Estate Agent
commission
To what degree are brokerage commissions or other fees negotiable? The ability to negotiate fees and commissions varies from firm to firm. Some firms are very flexible and give the individual advisors and brokers the ability to negotiate fees to some extent. Some firms offer a discount service via the Internet as well as a full service account. The degree of personal service and advice the investor requires will influence the amount of the discount.George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA |
