1

commission

noun com·mis·sion \ kə-ˈmi-shən \
Updated on: 15 Nov 2017

Definition of commission

1 a :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
3 a :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
4 a :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.

Examples of commission in a Sentence

  1. She served on the city's water commission.

  2. Both states set up commissions to examine their public schools.

  3. She gets a commission for each car she sells.

  4. The salespeople in that store all work on commission.

  5. a weapon used in the commission of a crime

Recent Examples of commission from the Web

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.

Origin and Etymology of commission

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


2

commission

verb

Definition of commission

commissioned; commissioning \-ˈmi-sh(ə-)niŋ\
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.

Examples of commission in a Sentence

  1. A portrait of the queen was commissioned.

  2. The magazine commissioned a story about the world's best beaches.

  3. The report on poverty was commissioned by the governor.

  4. The king commissioned the artist to paint his portrait.

  5. She was commissioned in the Navy as a captain.

  6. The ship was commissioned in 2004.

Recent Examples of commission from the Web

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.

Origin and Etymology of commission

derivative of 1commission

commission Synonyms

Synonyms
delegate, depute, deputize
Antonyms
disqualify
Related Words
assign, charge; appoint, designate, name, nominate
Near Antonyms
abrogate; abdicate

Financial Definition of COMMISSION

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.



COMMISSION Defined for English Language Learners

commission

noun

Definition of commission for English Language Learners

  • : 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

  • : the act of committing a crime


commission

verb

Definition of commission for English Language Learners

  • : 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 Defined for Kids

1

commission

noun com·mis·sion \ kə-ˈmi-shən \

Definition of commission for Students

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

2

commission

verb

Definition of commission for Students

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

Law Dictionary

commission

noun com·mis·sion

legal Definition of commission

1 :a formal written authorization to perform various acts and duties
  • a notary's commission
2 a :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
3 a :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

commission

transitive verb


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