Half Commission Man

AAA

DEFINITION of 'Half Commission Man'

A half commission man is an individual who introduces clients to stock brokers or other market professionals in exchange for an agreed upon percentage of any commissions earned as a result of the new client. Although a stock broker must share some of his or her commissions, the theory is that the broker will come out ahead due to an increase in the number or quality of clients.

INVESTOPEDIA EXPLAINS 'Half Commission Man'

A half commission man can either work for a specific stock broker or be a freelancer. They earn money by establishing relationships between stock brokers and clients. Any commissions that the stock broker earns from the client will be shared at a specified rate (usually half) with the half commission man.

RELATED TERMS
  1. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  2. Commission

    A service charge assessed by a broker or investment advisor in ...
  3. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Stockbroker

    1. An agent that charges a fee or commission for executing buy ...
  6. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
RELATED FAQS
  1. What does Value at Risk (VaR) have to do with maximization of shareholder wealth?

    By enabling investors to estimate with high probability the worst-case and best-case scenarios for the performance of a given ... Read Full Answer >>
  2. Why are fee-based accounts preferred by many high net worth individuals (HNWI)?

    High net worth individuals (HNWIs) often prefer fee-based investment accounts for reasons that include reduced conflicts ... Read Full Answer >>
  3. How can I calculate the tracking error of an ETF or indexed mutual fund?

    Calculate the tracking error of an indexed exchange-trade fund (ETF) or mutual fund by doing a standard deviation percentage ... Read Full Answer >>
  4. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  5. 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 >>
  6. 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 >>
Related Articles
  1. Professionals

    Financial Careers According To Hollywood

    Find out if classic films about Wall Street reflect what it's actually like to work there.
  2. Professionals

    Making It Big On Wall Street

    Read about some of the most glamorous Wall Street jobs and what it takes to land one.
  3. Professionals

    4 Ways To Get A Head Start On Your Financial Career

    Breaking into the finance business is tough, but these tips can help.
  4. Options & Futures

    6 Steps To Successfully Switching Financial Careers

    Save time and money by following these tips to a smooth career transition.
  5. Professionals

    Swim With The Sharks As A Stockbroker

    This job takes guts, hard work and a predator's instincts. Do you have what it takes?
  6. Mutual Funds & ETFs

    Safest Industries To Invest In

    Which are the safest industries and sectors for long-term investment and why?
  7. Bonds & Fixed Income

    How Are Zero-Coupon Municipal Bonds Taxed?

    What every investor needs to know about taxes and zero-coupon muni bonds.
  8. Mutual Funds & ETFs

    Top 4 ETFs That Will Help Diversify Your Portfolio

    Seeking low cost diversification to high quality stocks and bonds? Consider these 4 ETFs.
  9. Bonds & Fixed Income

    Muni Bonds, Taxable Bonds or CDs: Which is Best?

    Here's how to tell if municipal bonds are a better investment than taxable bonds or CDs.
  10. Mutual Funds & ETFs

    Mutual Funds or ETFs: Which is Better?

    Trying to decide between a mutual fund or ETF? Here's what you need to know.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center