Question

What is brokerage........???

Answer 1

Brokerage: When share certificates or debentures or government securities are transacted through an agent, the agent takes a commission in each transaction.

The commission charged by the agent is called brokerage and the agent is called a broker.

If transaction are made through a broker -

➠ Amount to be paid by the buyer = Market value + Brokerage.

➠ Amount to be paid by the seller = Market value - Brokerage

Answer 2

A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal.