Question

What is a Brokerage?

Answer 1

Brokerage : Commission charged by a broker is called Brokerage.

Brokerage is charged from both the buyer and the seller. Brokerage is calculated on the market value of the shares.

The sale and purchase of shares is generally done through persons called shareholders or simply brokers.

• A buyer has to pay market value to the shareholder and brokerage to the broker.
• The seller of the shares receives the market value but has to pay the brokerage to the broker.