Underwriter
A securities broker or dealer that purchases bonds from an issuer and resells them to investors.
bond-basics
Commission
A form of remuneration received by a broker, dealer or dealer bank purchasing or selling Bonds when acting as agent for a customer. The Commission is typically a charge to the customer of a set fee per Bond.
See Also
Start with the Bond Basics
Hundreds of Terms and Concepts
Interest Rate Swap
A type of derivative, in which the interest rate on the bonds is swapped, or exchanged, by the issuer for an agreed-upon fixed rate or variable rate based upon an index, calculated on a notional principal amount.