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?

---

Definitions:

Freudian Theory

A set of psychoanalytic theories related to unconscious desires, childhood experiences, and defense mechanisms.

Ambiguous

Describes information, statements, or situations that can be understood or interpreted in more than one way.

Psychosexual Stages

A series of stages in Freudian theory through which a child’s personality develops, each characterized by erogenous zones and conflicts.

Mature Sexual Relationships

Relationships that involve deep emotional connections, mutual respect, and a healthy perspective on sexual activity within the context of the relationship's overall dynamics.