Brokerage: Difference between revisions
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{{a|g|}}The fees one pays a [[broker]] to buy or sell securities for one, or to a [[swap dealer]] or enter in to derivatives having an equivalent effect. | {{a|g|}}The fees one pays a [[broker]] to buy or sell [[securities]] for one, or to a [[swap dealer]] or enter in to [[Equity derivatives|derivatives]] having an equivalent effect. The strict difference is that cash brokerage is usually a form of [[commission]] — payable to an [[agent]] for brokering a transaction between two [[principal]]s, whereas synthetic brokerage is a [[fee]] paid to one’s [[principal]], the [[swap counterparty]] and is not, as such, a [[commission]] in that pure sense. | ||
But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed | But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed. | ||
{{sa}} | {{sa}} | ||
*[[Principal]] and [[agent]] | *[[Principal]] and [[agent]] | ||
*[[Broker]] and [[dealer]] and that gruesome hybrid, the [[broker-dealer]] | *[[Broker]] and [[dealer]] and that gruesome hybrid, the [[broker-dealer]] | ||
*[[Prime brokerage transactions]] | |||
Latest revision as of 14:48, 7 November 2021
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The fees one pays a broker to buy or sell securities for one, or to a swap dealer or enter in to derivatives having an equivalent effect. The strict difference is that cash brokerage is usually a form of commission — payable to an agent for brokering a transaction between two principals, whereas synthetic brokerage is a fee paid to one’s principal, the swap counterparty and is not, as such, a commission in that pure sense.
But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed.
See also
- Principal and agent
- Broker and dealer and that gruesome hybrid, the broker-dealer
- Prime brokerage transactions