Question

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. Reggie's broker charged him a front-end load of 2.75% when he purchased a fund. Lisa sold 50 shares of stock A on a given day. Her broker charged her $12 for this trade. Pete isn't a regular investor. He hasn't bought or sold any stock this year. His broker charged him an inactivity fee of $75 for the year. Joanne's brokerage firm charged her for providing investment information to help her make informed choices.

Answer 1

Transaction fee:

Lisa sold 50 shares of stock A on a given day. Her broker charged her $12 for this trade.

Reggie’s broker charged him a front-end load of 2.75% when he purchased a fund.

Non-transaction fee

Joanne’s brokerage firm charged her for providing investment information to help her make informed choices.

John’s broker provided him with stock-trading software to manage his trading.

Pete isn’t a regular investor. He hasn’t bought or sold any stock this year. His broker charged him an inactivity fee of $75 for the year.

Answer 2

Transaction Fee

- Lisa sold 50 shares of stock A on a given day. Her broker charged her $12 for this trade.

- Reggie’s broker charged him a front-end load of 2.75% when he purchased a fund.

Non-Transaction Fee

- Joanne’s brokerage firm charged her for providing investment information to help her make informed choices.

- Pete isn’t a regular investor. He hasn’t bought or sold any stock this year. His broker charged him an inactivity fee of $75 for the year.

- John’s broker provided him with stock-trading software to manage his trading.

Explanation:

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