Commission

Definition: This is the fee you pay to a broker when you buy or sell a stock.  You can often avoid paying high commissions by using online brokers.

TeenAnalyst Advice: We recommend that if you're just investing a small amount of money to find an online broker.  Otherwise, the bulk of your money will be spent on paying your broker's commissions.

Also, some brokers are motivated by commissions.  This means that they have an extra incentive to get you to frequently buy and sell shares of stock so that they receive higher commissions.  This is in their interest, not yours!