Section 31 fee

Section 31 Fee

A fee the SEC charges to register and trade securities. Each transaction of a registered security incurs a small Section 31 fee, which is a tiny portion of 1% of the value of the transaction. While the fee is technically levied on FINRA and other self-regulatory organizations, they pass it on to individual investors.
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Section 31 fee

A Securities and Exchange Commission fee on the registration and trading of securities. The fee was first levied in the 1930s to finance the government's cost of regulating the securities markets. In early 2001 the fee amounted to 1/300 of 1% of the principal amount of a stock sale.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
3 Transaction-based expenses include Section 31 fees, liquidity payments and routing & clearing fees.
Total revenues, less transaction-based expenses, which include Section 31 fees, liquidity payments and routing and clearing fees (net revenue), were $602 million in the second quarter of 2012, down $59 million, or 9% compared to the second quarter of 2011 and included a $22 million negative impact from foreign currency fluctuations.
Cash, cash equivalents and short term financial investments (including $153 million related to Section 31 fees collected from market participants and due to the SEC) were $0.4 billion and net debt was $1.9 billion at the end of the second quarter of 2012.