Elimination of minimum brokerage commission rates occurred because of

Question

Quizplus · Accepted Answer

The elimination of minimum brokerage commission rates was a result of an action by the Securities and Exchange Commission (SEC) in 1975. Prior to this, brokerage firms were required to charge a minimum commission rate for each transaction, regardless of the size of the trade. The SEC's decision to eliminate this minimum allowed for greater competition among brokerage firms and ultimately led to lower fees for investors. The other options (competition from banks, demands of institutional investors, and competition from foreign brokerage firms) may have played a role in shaping the brokerage industry, but they were not the direct cause of the elimination of minimum commission rates.

Elimination of Minimum Brokerage Commission Rates Occurred Because of