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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 (Audience seed) themselves would cost $3,500 ($35 x 100 shares), but the broker would also need to be paid for finding someone (E-commerce) 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.
Although most investors calculate profit simply, the savvy investor knows actual profit accounts for commissions.
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