What will happen to bond prices if stock trading commissions

What will happen to bond prices if stock trading commissions decrease? Why?

Solution

There is always a hint of confusion between the investers about the commisions, some dont think that quoted bond prices included commissions, some think they get best proces from their brokers.

Confusion is basically because of the way the bonds are priced.

Whereas commissions for stock trades are clearly posted on brokerage websites, bond commissions are not.

Broker firms mark up or mark down bond prices. Markups and markdowns adjust the bond prices to reflect the firm’s commission. we can also say, instead of being charged a published commission of $7 to $10 per trade, as is the case with stocks, investors pay a fee that is based on the security’s price and fee.

And it is clear with the study that if stock trading commisions are decreased then investors will get the best pricing from the brokerage firms, they will spend less and gain mpre