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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

Brokerage and Taxes on Share Trading

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Definition: Brokerage

Brokerage is the amount charged by a registered share broker for buying or selling shares on behalf of an investor.
Brokerage is always calculated on the Market Value (MV) of shares.

Formula: Brokerage

\[\mathrm{Brokerage}=\frac{\text{Rate of brokerage}}{100}\times\text{Market Value}\]

Formula: Buying Price

Buying price = Market Value (MV) + Brokerage

Formula: Selling Price

Selling price = Market Value (MV) Brokerage

Maharashtra State Board: Class 10

Formula: Total Brokerage

Total brokerage = Brokerage per share × No. of shares

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