Commission

Business / Finance / Commission: In the context of securities, this involves mixing customer-owned securities with brokerage firm-owned securities. This process is referred to as rehypothecation, which is the use of customers' collateral to secure their loans. This is legal with customer consent, although some securities and collateral must be kept separately.

Commission Broker

Business / Finance / Commission Broker: The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who charge lower MORE

Futures Commission Merchant (FCM)

Business / Finance / Futures Commission Merchant (FCM): A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. MORE

Negotiated Commission

Business / Finance / Negotiated Commission: An unfixed broker's commission that is determined through negotiation, depending on the specifics of the trades performed. MORE

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