Business Glossary

Real estate: percentage of the selling price of the property, paid by the seller.
Securities: fee paid to a broker for executing a trade based on the number of shares traded or the dollar amount of the trade. Since 1975, when regulation ended, brokers have been free to charge whatever they like.

1. broker's charge for executing a trade.
2. fee, a percentage of the selling price of property, paid to a real estate broker.
3. fee paid to a bank's trust department , normally a percentage of the income from a trust account.

1. fee paid to an employee or agent for services performed, especially a percentage of a total amount received in a transaction, as distinguished from salary, which is a fixed amount payable periodically.
2. type of governmental regulatory body, such as the Federal Trade Commission.

fee paid to an insurance salesperson as a percentage of the premium generated by a sold insurance policy.

1. an amount earned by a real estate broker for services performed.
   Example: Broker Roberts sells a $300,000 home for a client. At a 6% commission rate the client owes the broker an $18,000 commission.

2. the official body that enforces real estate license laws. See Figure 39.
   Example: The State Real Estate Commission administers the real estate licensing examination, collects license fees, hears testimony from those who claim misconduct on the part of a licensee, and may punish offenders.