What Is a Commissions Expense?

Commissions are also known as "dental maids," "Chinese maids," and "bank stacks", or "commissions" for short. Intermediaries, such as dental dealers and brokers, said that they would introduce the remuneration obtained from the business. Origins are very early. In cases where the transaction must go through a dental practitioner, the commission is a form of mandatory intermediate exploitation. Most of the commission is paid by the seller, but also by the buyer and seller. The amount of commission depends on the nature of the product and the value of the goods. In some places, it has been established, and some practices have been formed. The comprador's income from conducting business on behalf of foreign businessmen. There are many names, including commissions for media businesses, commissions for guaranteeing Chinese businessmen's credit, and commissions for selling price differences. The ratios vary. ^[1]

[yòng jn]

Commissions are also known as "dental maids," "Chinese maids," and "bank stacks," referred to as "commissions." Intermediaries, such as dental dealers and brokers, said that they would introduce the remuneration obtained from the business. Origins are very early. In the case where the transaction must go through the dentist, the commission is a form of mandatory intermediate exploitation. Most of the commission is paid by the seller, but also by the buyer and seller. The amount of commission depends on the nature of the product and the value of the goods. In some places, it has been established, and some practices have been formed. The comprador's income from conducting business on behalf of foreign businessmen. There are many names, including commissions for media businesses, commissions for guaranteeing Chinese businessmen's credit, and commissions for selling price differences. The ratios vary. ^[1]

Commission (Commission) refers to the agent or broker for the client

The amount of commission affects your transaction costs to a certain extent

Take stocks as an example

1. If your fund amount is 100,000 yuan, 4 transactions per month, and the commission cost is 0.1%, 0.2%, 0.3% and other three types of transaction cost savings list:

Stock Trading Client	Amount of funds	Transactions per year	Annual transaction volume	commission	Annual transaction cost	Annual cost savings	Profitability from cost savings
A	100,000	48	9.6 million	1	9600	19200	19.2%
B	100,000	48	9.6 million	2	19200	9600	9.6%
C	100,000	48	9.6 million	3	28800	0	0%

2. If you have an amount of 100,000 yuan, trade 20 times a month, and the commission cost is 0.1%, 0.2%, 0.3% and other three types of transaction cost savings list:

Stock Trading Client	Amount of funds	Transactions per year	Annual transaction volume	commission	Annual transaction cost	Annual cost savings	Profitability from cost savings
A	100,000	240	48 million	1	48000	96000	96%
B	100,000	240	48 million	2	96000	48000	48%
C	100,000	240	48 million	3	144000	0	0%

By comparing the above table, different commissions can save a lot of money! Shareholder friends should pay attention!