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In an agency trade, the selling customer pays a?

1) markdown
2) load
3) commission
4) markup

1 Answer

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Final answer:

In an agency trade, the selling customer pays a commission. A commission is a fee paid to an agent for the services provided in facilitating a sale.

Step-by-step explanation:

In an agency trade, the selling customer pays a commission. A commission is a fee paid to an agent, such as a salesperson or broker, for the services provided in facilitating the sale of a product or service.

For example, if a real estate agent helps a customer sell a house, the selling customer will typically pay the agent a percentage of the sale price as a commission.

This commission is different from other options listed in the question. A markdown refers to a reduction in the price of a product, a load is a sales charge or fee on mutual fund investments, and a markup is the difference between the cost of a product and its selling price.

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