commission

noun
com·​mis·​sion | \ kə-ˈmi-shən \

Definition of commission

 (Entry 1 of 2)

1a : a formal written warrant granting the power to perform various acts or duties
b : a certificate conferring military rank and authority also : the rank and authority so conferred received a lieutenant's commission in the army
2 : an authorization or command to act in a prescribed manner or to perform prescribed acts : charge a commission to serve as notary public
3a : authority to act for, in behalf of, or in place of another … had summoned all the clans which acknowledged his commission— T. B. Macaulay
b : a task or matter entrusted to one as an agent for another executed a commission for me while he was in Singapore
4a : a group of persons directed to perform some duty The state set up a commission to study the proposed merger of the school districts.
b : a government agency having administrative, legislative, or judicial powers regulatory powers exercised by the Federal Trade Commission
c : a city council having legislative and executive functions She served on the city's water commission.
5 : an act of committing something commission of a crime
6 : a fee paid to an agent or employee for transacting a piece of business or performing a service especially : a percentage of the money received from a total paid to the agent responsible for the business He gets a commission for each car he sells.
7 : an act of entrusting or giving authority the commission of limited powers to the administrator
in commission or into commission
1 : under the authority of commissioners
2 of a ship : ready for active service
3 : in use or in condition for use The Internet connection is back in commission.
on commission
: with commission serving as partial or full pay for work done an artist working on commission
out of commission
1 : out of active service or use The ferry was put out of commission because of the bad weather.
2 : out of working order The elevator was out of commission.

commission

verb
commissioned; commissioning\ -​ˈmi-​sh(ə-​)niŋ \

Definition of commission (Entry 2 of 2)

transitive verb

1 : to furnish with a commission: such as
a : to confer a formal commission on was commissioned lieutenant
b : to appoint or assign to a task or function was commissioned to do the biography
2 : to order to be made commissioned a portrait
3 : to put (a ship) in commission The ship was commissioned in 2004.

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Examples of commission in a Sentence

Noun

She served on the city's water commission. Both states set up commissions to examine their public schools. She gets a commission for each car she sells. The salespeople in that store all work on commission. a weapon used in the commission of a crime

Verb

A portrait of the queen was commissioned. The magazine commissioned a story about the world's best beaches. The report on poverty was commissioned by the governor. The king commissioned the artist to paint his portrait. She was commissioned in the Navy as a captain. The ship was commissioned in 2004.
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Recent Examples on the Web: Noun

After a 60-day public-comment period, the commission will vote again. Kate King, WSJ, "New York Takes Step Toward Allowing Sports Betting," 28 Jan. 2019 At first, the commission was serving as oversight of NASA investigating itself. Margaret Lazarus Dean, Popular Mechanics, "The Oral History of the Space Shuttle Challenger Disaster," 28 Jan. 2019 According to the White House opioid commission’s 2017 report, 47 percent of US counties — and 72 percent of the most rural counties — have no physicians who can prescribe buprenorphine. German Lopez, Vox, "The simple idea that could help end America’s opioid epidemic," 26 Dec. 2018 For now, the commission has suspended the next phase of the data-challenge process pending the results of its investigation. Jon Brodkin, Ars Technica, "T-Mobile denies lying to FCC about size of its 4G network," 18 Dec. 2018 Initially, the commission’s chairman insisted that Smith’s conflicts of interest wouldn’t matter and that the agency’s staffers would handle a majority of the legwork in cases in which Smith would have to recuse himself. Makena Kelly, The Verge, "The FTC’s top consumer protection official can’t go after Facebook — or 100 other companies," 6 Dec. 2018 The commission cited Chinese telecommunications giants Huawei and ZTE in particular. Recode Staff, Recode, "Recode Daily: Who will Facebook fire after a damning New York Times investigation?," 15 Nov. 2018 The government will also commit to reporting every year for the next five years on the progress of the royal commission's recommendations. Trevor Marshallsea, Fox News, "PM formally apologizes to Australian child sex abuse victims," 22 Oct. 2018 The cultural commission that oversees the Badaling section of the Great Wall that would be turned into accommodations reportedly wasn't aware of the event and hadn't given its approval, according to Chinese media. Meredith Carey, Condé Nast Traveler, "Airbnb Calls Off Great Wall of China Sleepover Contest," 8 Aug. 2018

Recent Examples on the Web: Verb

His fashion innovations were revealed to a wider public when he was commissioned to create a 21st century biker jacket for the Museum of Modern Art’s 2017 exhibition Items: [Is Fashion Modern](https://www.youtube.com/watch?v=ho59e-FH03s)? Hamish Bowles, Vogue, "Meet the Designer Behind Lady Gaga’s Mesmerizing Sci-fi Costumes," 14 Jan. 2019 An Italian based in London, he was commissioned by Cole in 1865 to travel to Santiago de Compostela in Spain, where the cathedral’s elaborate Romanesque portal was decorated with granite figures and reliefs at the end of the 12th century. Richard Cork, WSJ, "Worthy Imitations Worth a Visit," 18 Dec. 2018 When it was commissioned in 2008, USS Freedom was meant to be the first of a new type of ship, the littoral combat ship (LCS). Kyle Mizokami, Popular Mechanics, "Two Years After Breakdown, This Littoral Combat Ship is Back in the Fleet," 18 Dec. 2018 It was commissioned by a group of Philadelphia-area Holocaust survivors and Jewish civic leaders. Kristen De Groot, The Seattle Times, "1st US public Holocaust memorial merges past with new tech," 22 Oct. 2018 It was commissioned from Garrard for the occasion, and became Sarah's signature tiara through the years. Maggie Maloney, Town & Country, "Jack Brooksbank Gave Princess Eugenie the Diamond and Emerald Earrings She Wore to Her Wedding,," 12 Oct. 2018 The ship, which has 300 beds, eight operation rooms and a medical helicopter, has carried out such missions to more than 40 countries provided free medical services for more than 180,000 people since it was commissioned in 2008. Clbyburn Saint John, Fox News, "Chinese navy hospital ship docks in Venezuela amid crisis," 22 Sep. 2018 In recent years, it’s commissioned shorter works from authors like John Scalzi as well as original books set in the Alien and X-Files universes. Andrew Liptak, The Verge, "Audible is giving members two free original audiobooks each month," 7 Sep. 2018 In 2001, he was commissioned to design and decorate the first new tiki bar in America, Taboo Cove at the Venetian Resort in Las Vegas. Pam Kragen, sandiegouniontribune.com, "Escondido's influential tiki man 'Bosko' is subject of new film," 8 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'commission.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of commission

Noun

14th century, in the meaning defined at sense 1a

Verb

1602, in the meaning defined at sense 1

History and Etymology for commission

Noun

Middle English commissioun "delegated authority, warrant delegating authority," borrowed from Anglo-French commission, borrowed from Medieval Latin commissiōn-, commissiō "commitment, entrusting, grant of authority," going back to Late Latin, "joining, engagement, sin," going back to Latin, "commencement of a game," from committere "to join together, engage, place in the keeping of, entrust, bring about" + -tiōn-, -tiō, suffix of verbal action — more at commit

Verb

derivative of commission entry 1

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Last Updated

8 Feb 2019

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Time Traveler for commission

The first known use of commission was in the 14th century

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More Definitions for commission

commission

noun

Financial Definition of commission

What It Is

A commission is a fee paid to an agent as compensation for executing a transaction. It is calculated either as a percentage of the transaction value or as a flat fee.

How It Works

Let's assume you would like to purchase 100 shares of Company XYZ at $35 per share, and your broker charges a 2% commission to make the trade.

The shares themselves would cost $3,500 ($35 x 100 shares), but the broker would also need to be paid for finding someone to sell the shares to you. For their services, they would charge $70 ($3,500 x 2%). The total cost of the transaction would be $3,500 + $70 = $3,570.

Four months later, you decide to sell your XYZ shares. Now selling at $50, you would receive $5,000 ($50 x 100 shares) from the sale. But once again, the brokerage would take 2% ($100), so the actual proceeds from the transaction would total $4,900 ($5,000 - $100).

Although most investors would calculate the profit on the Company XYZ investment as simply the difference between $5,000 and $3,500 (or $1,500 -- +42.85%), the savvy investor takes commissions into account and knows that the actual profit is $4,900 - $3,570 = $1,330 (or +37.25%).

Stock brokers most often come to mind when discussing commissions, but commissions are the major means of compensation for real estate agents, financial advisors, investment bankers, and many others.

Why It Matters

As we demonstrated in the example above, commissions eat into returns and should be considered when making any investment. The Company XYZ investment returned +37.25% after commissions rather than +42.85% -- a full 5.6% of the return went toward paying commissions.

The type of broker you use often dictates the commission you pay. Full-service brokers provide a lot of service in exchange for higher rates. Discount brokers, on the other hand, usually focus on The definition of commission on InvestingAnswersexecuting trades and do little else. Their clients often pay much lower commissions. In either case, commission structures also vary based on other factors like the size of the client's account, the number or size of trades a client makes, the type of trades a client makes, the kind of account the client has, and whether or not the client buys or sells securities online or over the phone.

It is important for investors to understand their trading preferences when evaluating commission structures. Certain fee schedules may be more beneficial for different types of investors and traders.

Source: Investing Answers

commission

noun

English Language Learners Definition of commission

 (Entry 1 of 2)

: a group of people who have been given the official job of finding information about something or controlling something
: an amount of money paid to an employee for selling something
formal : the act of committing a crime

commission

verb

English Language Learners Definition of commission (Entry 2 of 2)

: to order or request (something) to be made or done
: to order or request (someone) to make or do something
: to make (someone) an officer in the military

commission

noun
com·​mis·​sion | \ kə-ˈmi-shən \

Kids Definition of commission

 (Entry 1 of 2)

1 : an order granting the power to perform various acts or duties : the right or duty to be performed
2 : a certificate that gives military or naval rank and authority : the rank and authority given He received his commission in the army as a captain.
3 : authority to act as agent for another : a task or piece of business entrusted to an agent
4 : a group of persons given orders and authority to perform specified duties a housing commission
5 : an act of doing something wrong the commission of a crime
6 : a fee paid to an agent for taking care of a piece of business

commission

verb
commissioned; commissioning

Kids Definition of commission (Entry 2 of 2)

1 : to give a commission to
2 : to put (a ship) into service

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commission

noun
com·​mis·​sion

Legal Definition of commission

1 : a formal written authorization to perform various acts and duties a notary's commission
2a : authority to act for, in behalf of, or in place of another
b : a task or matter entrusted to one as the agent for another
3a : a group of persons directed to perform a duty
b usually capitalized : a government agency Federal Trade Commission — see also agency
c : a city council having legislative and executive functions
4 : an act of committing something commission of the crime
5 : a fee paid to an agent or employee for transacting a piece of business or performing a service especially : a percentage of the money received paid to the agent responsible for the business

Other Words from commission

commission transitive verb

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