Soft Dollars

CFA Level I
#1

Could someone please explain this in lehman’s terms?

#2

Also, Commission Dollars- Aologies if this is tedious…

#3

Check this link at Investopedia: http://www.investopedia.com/terms/s/softdollars.asp

#4

payments to their service providers

#5

Thanks guys!

#6

Soft dollars are a ‘rebate’ from the broker who executes the trade. These dollars are suppose to be used to purchase software, subscriptions, etc to further benefit the client. They may not be used on overhead. Its a very controversial arrangement and its under heat alot. Above is all you really need to know.