Definitions [1]
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.
Formulae [4]
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
Formula: Total Brokerage
Total brokerage = Brokerage per share × No. of shares
