Question

_ no. of '10 share are purchased at 22.50 after investing 4545 and paying a brokerage of 1%​

Answer 1

Answer:

Trading in securities involves several charges besides the purchasing price of such securities. One of the most important and predominant of these charges is the brokerage fee that a trader needs to pay to the concerned broker. This brokerage fee is the remuneration a broker receives for facilitating trade.

Typically, it is a percentage of the total trade value that is charged as brokerage. Brokers levy this fee over and above the original trade value and deduct it from a trader’s portfolio.

Such monetary outgo could be substantial depending on the scale of the trade. Therefore, several investors use a brokerage calculator to expedite the cost analysis.