Question

Commissions charged on the trading of stock are

A. fixed.
B. charged only on the buying of stock.
C. charged only on the sale of stock.
D. charged on the buying and selling of stock.

Answer 1

D. Charged on the buying and selling of stock.

Step-by-step explanation:

Trade is defined as the action of buying and selling goods and services. And a trade commission is payed whenever an action is being traded, whether it is on the sale or on the buying.

Answer 2

On trading of stocks, the commissions charge are based on buying and selling of the stocks.

Answer: Option D

Explanation:

Stock traders trade equity securities and purchase/sell shares for themselves or for their clients for negotiated commission. In the process of buying or selling of stocks, various charges are included namely brokerage, Securities Transaction Tax (STT), Depository Participant (DP) charge, Securities Exchange Board of India (SEBI) turnover charges, Capital gain tax (includes short and long term capital gain tax) and Stamp Duty (by State government).