Brokerage Company


DEFINITION of 'Brokerage Company'

A business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.

BREAKING DOWN 'Brokerage Company'

For example, when a trade order for a stock is carried out, an individual often pays a transaction fee for the brokerage company's efforts to execute the trade.

The real estate industry also operates in a brokerage-company format, as it is common for real estate brokers to work together, each representing one party of the transaction, in order to make a sale. In this case, the commission is split between both brokerage companies.

  1. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  2. Variable Prepaid Forward Contracts

    An agreement to give a predetermined number of shares to a brokerage ...
  3. Raintaker

    A former employee of a brokerage firm who takes high-value clientelle ...
  4. Commission

    A service charge assessed by a broker or investment advisor in ...
  5. Real Estate Agent

    A person with a state/provincial license to represent a buyer ...
  6. Realtor

    A real estate professional who is a member of the National Association ...
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