A Stockbroker Is Paid 45% of the Commission Her Firm

question 189

Short Answer

A stockbroker is paid 45% of the commission her firm charges her clients. If she personally received $134.55 on a $11,500 transaction, what is the firm's commission rate?

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Definitions:

Transaction Fee

A fee charged for conducting a financial operation such as trading securities, processing payments, or other transactions.

Shares

Units of ownership interest in a corporation or financial asset, giving holders a portion of the company's profits and decision-making power.

PE Ratio

A valuation metric for stocks, calculated by dividing the current market price of a stock by its earnings per share.

Earnings Per Share

A financial metric that divides a company's profit by the outstanding shares of its common stock.