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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Commissions

Definition:

It's the lifeblood of stockbrokers. What gets commissioned and how it gets commissions is an R-rated story, however. See wrap account; Churning; Sell-side analyst. One key theme is that commission rates have come down. A lot more shares trade today versus 30 years ago, but commission rates are a fraction (like 0.5-3%) of what they were in 1980.

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