Commission
Commission: An amount paid by
a financial institution to an intermediary for the placing
of business. Normally calculated as a percentage of
the amount paid (i.e. of the premium for an insurance
policy or of the amount invested in a fund or used to
purchase securities). Commission is also payable in
a number of other situations where the payment for a
service is a proportion of the value of the transaction
(eg the provision of foreign currency, the sale of a
house, etc).
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