We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Gross Revenues from the Securities Business: A Comprehensive Guide
Definition & meaning
The term gross revenues from the securities business refers to the total income generated by a broker or dealer from various activities related to securities transactions. This includes commissions earned from transactions, fees for executing trades, and income from advisory services, among others. It is important to note that this term excludes certain types of revenues, such as those from the sale of variable annuities or shares of registered investment companies.
Table of content
Legal use & context
Gross revenues from the securities business are primarily used in the context of securities regulation and financial reporting. This term is relevant in areas such as:
Securities law compliance
Financial disclosures for brokers and dealers
Taxation of income from securities transactions
Individuals and businesses involved in the securities industry may encounter forms or procedures related to this term. Users can utilize legal templates from US Legal Forms to ensure compliance with applicable regulations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of gross revenues from the securities business:
A brokerage firm earns $100,000 in commissions from executing trades for clients, $20,000 from advisory services, and $5,000 from interest on customer accounts. Their gross revenues would total $125,000.
A dealer engages in trading activities and realizes a net gain of $50,000 from securities held in their trading account, in addition to earning $10,000 from commissions. Their gross revenues would be $60,000.
Relevant laws & statutes
The main legal reference for gross revenues from the securities business is found in the Securities Investor Protection Act, specifically under 15 USCS § 78lll. This statute outlines the definition and components of gross revenues applicable to brokers and dealers.
Comparison with related terms
Term
Definition
Difference
Net Revenues
Total income after deducting expenses
Gross revenues do not account for expenses, while net revenues do.
Commissions
Fees earned from executing trades
Commissions are part of gross revenues but do not encompass all income sources.
Common misunderstandings
What to do if this term applies to you
If you are involved in the securities business and need to calculate your gross revenues, consider the following steps:
Gather all relevant financial records, including transaction statements and commission reports.
Use a comprehensive accounting system to track your income from various sources.
Consult with a financial advisor or legal professional to ensure compliance with applicable regulations.
Explore US Legal Forms for templates that can assist you in documenting your revenues accurately.
Find a legal form that suits your needs
Browse our library of 85,000+ state-specific legal templates.