Saturday, December 25, 2010

Commission

A commission is a fee that is paid by the investor (directly or indirectly) to a broker/dealer/adviser or other sales agent. This fee compensates the adviser for providing investment advice and assistance to the investor. Commissions also create an incentive for dealers to sell funds, and creates the potential for conflicts of interest.

Synonyms: Sales incentive, Adviser fee, Advice fee, Sales fee
 
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