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Determine the type of fee that will be charged in each situation:

John’s broker provided him with stock-trading software to manage his trading.
A) Service Fee
B) Front-End Load
C) Trade Fee
D) Inactivity Fee

User Henry Leu
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1 Answer

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Final answer:

John's broker will charge a Service Fee for providing the stock-trading software. This is because such fees are linked to additional services or tools that assist clients in managing their investments effectively.

Step-by-step explanation:

In the situation described where John's broker provided him with stock-trading software to manage his trading activities, the type of fee that will typically be charged is a Service Fee. This is because service fees are generally associated with the provision of additional services, tools, or platforms provided by a broker to assist a client in managing their investment portfolio. A front-end load is usually associated with mutual funds and represents a commission or sales charge applied when purchasing shares. A trade fee, also known as a commission, is charged when a security is bought or sold. An inactivity fee may be charged if an account is not used for trading over a certain period. Therefore, the most suitable answer for the provision of stock-trading software is A) Service Fee.

User Forthewinwin
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