commission

noun

com·mis·sion | \ kə-ˈmi-shən

plural commissions

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

2a : an authorization or command to act in a prescribed manner or to perform prescribed acts : charge a commission to serve as notary public

b : a formal request to produce something (especially an artistic work) in exchange for payment … he found his footing as a Western artist when he received a commission in 1958 to create two … paintings …— William Grimes also : a work produced by commission … the play was a commission of the Guthrie Theatre in Minneapolis … — Sharon Eberson

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\ kə-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.

Other Words from commission Synonyms More Example Sentences Learn More about commission

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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.

Recent Examples on the Web: Noun

Johnathan took to Twitter to share the troubling news, confirming that the famed boat would be out of commission during crab fishing season, which put an end to his almost four-decades-long streak. — Blair Donovan, Country Living, "This Is Why 'Deadliest Catch' Won't Feature the Time Bandit Anymore," 28 Apr. 2019 In the third quarter, Betterment will begin offering a new family of funds to independent advisers, who can buy and sell them for clients on the company’s platform free of commission. — Lisa Beilfuss, WSJ, "Robo Adviser Betterment Woos Advisers With New Funds," 11 Apr. 2019 Queue up something to watch beforehand as your hands will be out of commission while in the gloves. — Glamour, "This Self-Warming Hand Mask Saves My Cuticles Between Manicures," 7 Mar. 2019 About 84 percent of the commission’s $552 million capital budget goes toward highway projects. — Jason Laughlin, Philly.com, "Pennsylvania Turnpike tolls to increase 6% in 2019," 3 July 2018 O'Brien also does commissions, and most of his work is for sale on request. — Erica Gonzales, Harper's BAZAAR, "Meet the Artist Behind the Stunning Meghan Markle Portrait Featured by Beyoncé and Jay-Z," 21 Feb. 2019 One of his first commissions, a Long Island laboratory, factory, and warehouse for Estée Lauder with Sam Brody, had been on the cover of Architectural Record in 1965, and the Lauder family was pleased with their architect. — Alexandra Lange, Curbed, "How not to cheat children: Let them build their own playgrounds," 18 July 2018 Sending a message The commission, composed of seven residents, has been around for 18 years. — Zahra Ahmad, azcentral, "'Scottsdale for All' hopes to spread inclusiveness," 13 July 2018 By March 2016, the state legislature approved changes to state law that allowed state parks to apply directly to the state commission for liquor licenses, bypassing local boards and requirements for public hearings. — Amy Lavalley, Post-Tribune, "Official: Dunes liquor permit on meeting agenda in error," 11 July 2018

Recent Examples on the Web: Verb

For his part, Dixon was commissioned to produce several new works to decorate the space. — Parker Bowie Larson, ELLE Decor, "The New Versace Home Collection Is the Fantasy of Our Candy-Colored, Neon-Tinged Dreams," 9 Apr. 2019 The ship was finally commissioned in 1990, a year before the breakup of the USSR, and Russia inherited the ship. — Kyle Mizokami, Popular Mechanics, "Russia’s Beleaguered Aircraft Carrier Could Be Scrapped If New Repair Yard Can’t Be Found," 9 Apr. 2019 The developers commissioned a book on his life and an exhibit of his work in the building’s lobby. — Josh Barbanel, WSJ, "Developers Dust Off the Cobwebs—Again—From Architect’s Faded Legacy," 18 Apr. 2019 In between flirtatious comments and knowing looks, Arya commissioned a new weapon of her own design. — Kayleigh Roberts, Marie Claire, "Arya’s New Weapon on ‘Game of Thrones’ Is Going to Be a “Showstopper”," 15 Apr. 2019 In 1949 the couple commissioned another Cartier brooch, this time coupling a diamond cat with a sapphire. — Stellene Volandes, Town & Country, "How the Cartier Panther Became a Jewelry Icon," 20 Mar. 2019 According to Deadline, the series commissioned 120 hours of interviews from more than 40 contributors, archival news footage, and reenactments. — Megan Stein, Country Living, "Who Are Madeleine McCann's Parents? What to Know About Kate and Gerry McCann," 14 Mar. 2019 Small-scale studies commissioned by exoskeleton makers and their customers have shown that use of the devices reduces oxygen use and muscle activity—proxies for worker fatigue. — Leigh Kamping-carder, WSJ, "Industrial Exoskeletons Give Workers a Lift," 17 Jan. 2019 According to an annual study commissioned by Upwork, a platform for freelance workers, more than 1 in 3 Americans freelanced in 2018. — Gaby Del Valle, Vox, "Amazon is cutting costs with its own delivery service — but its drivers don’t receive benefits," 26 Dec. 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.

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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Dictionary Entries near commission

Statistics for commission

Last Updated

17 May 2019

Look-up Popularity

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 InvestingAnswers executing 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

See the full definition for commission in the English Language Learners Dictionary

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