Double Dipping

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DEFINITION of 'Double Dipping'

For brokerage firms, when a broker puts commissioned products into a fee-based account. The broker makes money from both the client and the commission.

INVESTOPEDIA EXPLAINS 'Double Dipping'

There is more than one meaning for the term depending on the context. For example, the practice of drawing two incomes from the government, usually by holding a government job and receiving a pension, is also referred to as double-dipping.

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RELATED FAQS
  1. What is financial double-dipping?

    In the financial industry, double-dipping occurs when a financial professional, such as a broker, places commissioned products ... Read Full Answer >>
  2. What is a trailing commission?

    Very simply, a trailing commission is money you pay an advisor each year that you own an investment. The purpose of the fee ... Read Full Answer >>
  3. If an employee is paid by commission, who is responsible for withholding taxes?

    It depends. An individual who receives commissions can be treated in the same manner as an individual who receives straight ... Read Full Answer >>
  4. How does the risk of investing in the aerospace sector compare to the broader market?

    Investing in the aerospace sector is riskier than investing in the broader market. The most accurate measure of sector volatility, ... Read Full Answer >>
  5. How does a pension income drawdown work?

    While there are similar drawdown plans in the United States, a pension income drawdown plan most commonly refers to a specific ... Read Full Answer >>
  6. What is the most important section in an investment company's prospectus?

    It is important for investors to examine all information contained within an investment company’s prospectus. However, the ... Read Full Answer >>
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