This section is from the book "Money And Investments", by Montgomery Rollins. Also available from Amazon: Money and Investments.
The charge made by any banker or broker, for buying or selling securities for some one else; the banker's, broker's, or promoter's charge for services. When an agent or broker sells or buys a security for another, acting as a " middleman," he receives a commission for his services. In other words, he is "commissioned" to accomplish a certain act. In the case of a merchant who owns goods and sells the same to his customers, he makes a " profit," not a "commission; " the distinction between a "profit " and a "commission " being, that in the case of the former there is no "middleman;" that is, the owner sells directly to the purchaser; the difference between the buying and selling price being the "profit." In the case of a "commission" when securities or commodities are passed from the owner, through an agent or broker, to a third party - the buyer - the agent or broker receives a com-pensation called a " commission."
Stock Exchange Rules for Commission Charges:
Commissions shall be calculated as follows (except as provided in Subdivs. (c) and (d) of this Sec):
On Boston Stock Exchange
1/8 per cent | ||
Government bonds are exempt from the regular rates. | ||
Bank Stock and Trust Company Stocks, pershare.............. | ... 25 cents | |
Insurance Stocks, per share............................... | ... 25 cents | |
Textile Manufacturing Stocks and Real Estate Trust Stocks, 1/4 per cent on par value | ||
When the above stocks are selling at double their par, the commission on them shall be doubled. | ||
All other stocks selling at $300 or over per share............ | ... 50 cents | |
Selling below $300, or at $125 or more per share................. | 20 cents................... | |
Selling below $125, or at $10 or more per share................. | 15 cents............... | |
Selling below $10 and at $1 or more....................... | 15 cents | |
Selling below $1 per share................ | $1.50 per hundred shares | |
Minimum commission per transaction................... | .....$1.00 |
On stocks selling below $10 per share.................. | ........7½c. per share |
On stocks selling at $10 or above but below $125.. | 15c. per share |
On stocks selling at $125 per share or above..... | ........20c. per share |
On bonds.................................. | .⅛ of 1 % of par value |
Minimum commission......................... | $1.00 per transaction |
On Chicago Stock Exchange | |
Bonds ..................... | 1% of par value |
Stocks selling below $10 per share................ | 71/2 per share |
Stocks selling at $10 per share and above but below $125 | 15c. per share |
Stocks selling at $125 per share and above but below $300. | 20c. per share |
Stocks selling at $300 per share and above but below $500 | 50c. per share |
Stocks selling at and above $500 per share............ | $1.00 per share |
Government bonds...........................1/16 of | 1% of par value |
Minimum commission $2, except on stocks below $10 per share |
 
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