Half Commission Man

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.

BREAKING DOWN '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. Double Dipping

    For brokerage firms, when a broker puts commissioned products ...
  2. Each Way

    A slang phrase used when a broker earns commissions from both ...
  3. May Day

    Refers to May 1, 1975, when brokerages changed from a fixed commission ...
  4. Agency Broker

    A broker that acts as an agent to its clients. When acting as ...
  5. Carrying Broker

    A commodities or securities broker who provides back office functions ...
  6. Give Up

    A procedure in securities or commodities trading where the executing ...
Related Articles
  1. Financial Advisor

    How Does Commission Work?

    A commission is the charge that brokers or investment advisors assess in exchange for their services.
  2. Financial Advisor

    Deal Effectively With Difficult Clients

    Learn how to tame the most shrewish clients with these simple methods.
  3. Investing

    Why Use a Discount Broker?

    A discount broker is a stockbroker that does not offer clients investment advice, but trades shares for a smaller commission than a full-service broker.
  4. Markets

    What Does a Broker Do?

    In the investment world, broker is a term used to refer to an individual or entity that helps facilitate trading in financial securities.
  5. Investing

    Research Report Red Flags For Brokers

    Discover how to look past analysts' ratings to find winning stocks for your clients.
  6. Financial Advisor

    Six Rut-Busting Business Moves For Brokers

    Find out how to beat a plateau and boost your sales to the next level.
  7. Trading

    Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  8. Trading

    Brokers: Do You Want To Sell Stocks Or Insurance?

    Know the difference between working as a broker or an insurance rep.
  9. Trading

    Is Your Broker Acting In Your Best Interest?

    Learn the clues you'll need to determine whether you've chosen a reputable professional.
  10. Investing

    How Do Real Estate Agents Get Paid?

    Here's how real estate commissions on home sales really work. And, yes, they're negotiable.
RELATED FAQS
  1. Do I always need to use a stock broker?

    Do I need a stock broker to buy stocks for myself, even if I get a stock brokers license? Or is there a rule that makes it ... Read Answer >>
  2. How does an insurance broker make money?

    Discover how an insurance broker makes money. Insurance brokers are important in helping people find the right insurance ... Read Answer >>
  3. What is the difference between a broker and a market maker?

    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts ... Read Answer >>
  4. Why do brokers ask for personal information before they make any trades?

    According to the Securities and Exchange Commission (SEC), there are three main reasons why a broker will ask for personal ... Read Answer >>
  5. Does agency theory apply to brokers and clients?

    Learn how the existence of incentives that encourage moral hazard impacts broker-client relationships. Understand how agency ... Read Answer >>
  6. How much will it cost me to become a casual investor on my own?

    Understanding the costs associated with becoming a casual investor is important if you want to be successful. It is important ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center