Steven Wallman aims to do to the mutual fund industry what Charles Schwab did to the old fixed commission structure--rip it up.
Keep in mind, that this was a group that grew up in the fixed commission era of paying 25 cents a share.
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Until the early 1970s stocks traded on a fixed commission set by the NYSE, up to 2% each way (or 4% in and out) of the total value of the shares being traded, with extra fees for smaller transactions sometimes doubling the cost.
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Fixed brokerage commission rates were abolished on "May Day" in 1975.
The more regulated and localized American economy had all sorts of inefficiencies and trade barriers that created safe harbors for institutions like banks, department stores, insurance companies, fixed-commission stock brokerages, and middlemen in supply chains.
McArthur fixed that by negotiating the Nationwide commission and setting up a for-profit subsidiary owned by ASEA to provide insurance and other benefits.
He typically charges a fixed fee and takes a 10% commission on all goods ordered.
When a broker makes four times the commission placing a variable mortgage versus a fixed, what did you think is going to happen?
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Some believe that estate agents may be forced to introduce fixed fees for their services, rather than taking an average 1.5% commission.
With 55 percent of all U.S. households beholden to a single, fixed-line provider of broadband access (mostly cable modem service), the Commission should consider how each of its rules affects broadband investment.
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Last month the European Commission recommended that, each year, firms release a breakdown of all the components of their directors' fixed and variable pay.
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