Income Sources for Members or Brokers
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Question
Which of the following is an income that is the source of revenue for members or brokers?
Answers
Explanations
Click on the arrows to vote for the correct answer
A. B. C. D.D
The correct answer to the question is D. Trading fee.
A trading fee is a charge that a broker or exchange imposes on investors for executing a securities transaction. The fee is usually a small percentage of the total value of the transaction or a flat fee per trade. Trading fees generate revenue for brokers and exchanges, and are one of the main sources of income for these entities.
Option A, Copyright fee, refers to a fee paid to the owner of a copyrighted work for the use or reproduction of that work. This fee is not related to securities trading and is not a source of revenue for brokers.
Option B, Application fee, refers to a fee that an individual or entity pays to apply for a service or product. This fee is not related to securities trading and is not a source of revenue for brokers.
Option C, Fixed cost fee, refers to a fee that does not vary with the level of activity or output. This type of fee is not specific to securities trading and is not a source of revenue for brokers.
In summary, while all the options mentioned could potentially generate revenue for different types of businesses, the income that is specifically a source of revenue for members or brokers is the trading fee.
