What "commission" means in finance

Commission is a fee charged by a financial professional, such as a broker or financial advisor, for services rendered. It is typically a percentage of the value of a transaction, such as the sale or purchase of securities, insurance policies, or other financial products. Commission-based compensation is a common practice in the financial industry, and it is intended to incentivize financial professionals to generate business and provide quality advice to clients. However, commission-based compensation can also create conflicts of interest if financial professionals prioritize their own compensation over the best interests of their clients.