What Does brokerage Mean
Brokerage is called the work carried out by a broker and the commission that brokers charge according to the operations they achieve.
As you can see, to understand the notion of brokerage you first have to focus on the idea of a broker . This is the name of the merchant who is authorized to make purchases and / or sales on behalf of others .
A brokerage contract is one that leads one of the parties to promote the signing of a certain contract between the other party and a third party, obtaining a commission as consideration .
Brokerage, in short, involves the performance of someone (the broker) as a promoter or intermediary in a commercial operation. The broker is the link between who offers a product and the subject who demands it , receiving in exchange a commission for their intervention.
It is known as brokerage fees to the remuneration a company or merchant paid to a third party by the action developed as a commercial intermediary. These brokerage expenses include the commission received by the broker and may include travel expenses and other disbursements.
In the financial arena, stock brokerage is common. A broker bag , also called stockbroker , is in charge of connecting sellers and buyers of assets.
The work of these runners is very important. Thanks to stock brokerage, people who have no knowledge of the operation of the stock market or financial instruments can invest in shares of large companies and obtain dividends, for example.