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Mutual Funds Videos 165 videos

Finance: What is Term To Maturity?
12 Views

Term to maturity is kind of the life cycle of a bond, but luckily for the bond, it gets to skip puberty.

Finance: What is Yield to Maturity?
6 Views

What is Yield to Maturity? When calculating bond yields, the yield to maturity is the interest rate that an investor would ultimately accumulate if...

Finance: What is Aftertax Yield?
8 Views

What is After Tax Yield? After tax yield is simply how much an investment makes (or yields) after taxes have been paid. This term refers to bond yi...

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Finance: What is commission? 112 Views


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Description:

What is commission? Commission is incentive based compensation earned by facilitators based on a percentage of the dollar value of the transaction(s) they close. Real estate brokers, sales agents, entertainment industry managers, marketing reps, stockbrokers, and consultants are all professions that earn their money through performance based commissions instead of contractual salary.

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English Language

Transcript

00:00

finance a la shmoop. what is commission? well it's the greatest motivator for

00:08

salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]

00:13

salary. a little monetary carrot dangling out in front of a salesperson to you

00:18

know encourage them to sell sell sell. alright you're an agent who just sold a

00:22

house good for you. you get a 3% Commission. the house went for a million

00:27

bucks well you get 30 grand for the privilege or at least your brokerage

00:30

does, and then you get some piece of that. ok now you're the stock broker who sold

00:34

3 million shares of stock. well good for you

00:37

you get four cents a share in Commission 120 grand in the pocket of your

00:41

brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]

00:45

who just inked Brad pitiful into a movie deal worth 20 million bucks, well good

00:49

for you your agency gets a 10% commission or two

00:53

million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in

00:57

Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell

01:02

a polished version of that Harvey Weinstein story well that's a commission

01:07

impossible. [man frowns]

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