A Full-Service Broker Charges a Commission Rate of 2

question 275

Short Answer

A full-service broker charges a commission rate of 2.2% of the total dollar value of a stock transaction. A discount broker charges a transaction fee of $25 plus an additional five cents per share. Suppose you purchase 800 shares of Talisman Energy at $21.75 per share. What percentage of the commission fee charged by the full-service broker would you save by using the discount broker?

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Definitions:

Egyptian Tomb

A burial site built by ancient Egyptians to honor and house the dead, often elaborately decorated with art and hieroglyphics.

Kouros

Greek, “young man.” An Archaic Greek statue of a young man.

Nude Figure

An artistic representation focusing on the figure of a human without clothing, often used to explore human form, emotion, or the concept of natural beauty.

Kore

A type of ancient Greek sculpture representing a young woman, characterized by a standing figure clothed in long draped garments.