The Securities and Exchange Commission (SEC) announced the fiscal year 2021 adjustments to transaction fee rates under Sections 31(b) and (c) of the Securities Exchange Act of 1934. These fee rates are applied based on the total dollar amount of sales of certain securities, either on a national securities exchange or through members of a national securities association. The new fee rate is set at $5.10 per million dollars starting February 25, 2021. This rate aims to cover the SEC’s annual budget of $1,926,162,000, as specified in the Consolidated Appropriations Act, 2021.
Simple Explanation
The SEC decided that starting February 25, 2021, they would charge $5.10 for every million dollars of certain stocks sold to help pay their $1.9 billion budget. This plan uses complicated math which some people might find hard to understand.