For example, when a fund manager thinks that the research report of a brokerage firm is very valuable and acts accordingly, he will generally not pay the "research fee" directly to the research department of the brokerage firm; He will send the trading instructions to the trading counter of the brokerage firm and pay a little more commission.
He can say to his traders, "The analyst of a certain securities is very kind to us, so next time we will send them the purchase order of 6,543,800 shares of Microsoft, and pay them a commission of 0.654.38+05%." In fact, he can only pay a commission of 0. 1%, and even doesn't do some securities business at all. The reason why he is willing to give the other party a large commission is entirely because the other party's research report is well written.
Extended data
The particularity of soft dollar
Soft dollar originated from trading agent and has become a special form of fund brokerage. In the transaction agency, once the agency relationship is formed, the client entrusts the fund manager to invest, which may generate soft dollars.
Although the "soft dollar" transaction is reasonable, the ambiguity and particularity of its definition can easily lead to disputes between fund managers and customers, because before there is a clear regulation on how to deal with the "soft dollar" problem, fund managers can easily use the gap in the "soft dollar" transaction to infringe on the rights and interests of customers and seek benefits for themselves.
In fact, it is difficult to judge which research results and services are beneficial to the fund and which research results and services are beneficial to the fund manager. How to objectively evaluate these problems and establish a complete system to measure the improvement of laws and regulations and the urgent need for the introduction of "soft dollar" standards.
Baidu encyclopedia-soft dollar
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