B

Glossary · PSX term

Brokerage fee.

A brokerage fee is the cost charged by a broker when buying or selling shares. It reduces net returns and should be included when comparing portfolio performance.

Definition

Fees can include brokerage, taxes, and other charges. Investors should separate gross movement from net realized performance.

Worked example

If a trade earns Rs. 1,000 before costs and charges are Rs. 120, the net gain is Rs. 880 before any other tax effects.

Related on PSX Clarity

Capital gain tax

Unrealized gain

More glossary terms

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Bonus shares are additional shares issued to existing shareholders without a cash payment. They increase the number of shares held, while the share price usually adjusts to reflect the larger share count.

Book closure is the period when a company closes its shareholder register to determine who is eligible for a dividend, bonus, right share, or meeting vote.

Book value is the accounting value of a company's net assets. PSX investors often compare it with market price, especially for banks and asset-heavy businesses, but it does not capture every business strength or risk.

Beta estimates how sensitive a stock has been to market moves. It is a historical risk measure, not a forecast of future performance.

A bull market is a sustained period of rising stock prices and positive investor sentiment.

A bear market is a sustained period of falling prices, usually a drop of 20% or more from a high.

Blue-chip stock

A blue-chip is a large, established, financially sound company with a track record of stable performance.

Book-building is a process where institutional investors bid to set the IPO price before the public offer.

Broker sub-account

A sub-account is a client account held within a broker's main CDC account at the depository.