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Gross Dealer Concession

Gross Dealer Concession (GDC) refers to the total compensation received by a brokerage firm for selling a security, typically mutual funds or annuities. This compensation includes commissions, fees, and other payments made to the dealer for distributing the investment product. GDC is used to measure the total revenue generated from sales efforts and is an important metric in evaluating the performance of financial advisors and sales teams within a brokerage.

Example

A financial advisor receives a GDC of 5% on a $100,000 mutual fund sale, earning the firm $5,000 in total compensation for distributing the fund.

Key points

• Represents total compensation received by a dealer for selling a security.

• Includes commissions, fees, and other payments related to distribution.

• Measures the revenue generated from sales efforts in brokerage firms.

Quick Answers to Curious Questions

GDC is calculated as the total of all commissions, fees, and payments received by the dealer for selling investment products like mutual funds.

GDC reflects the effectiveness of sales efforts and directly contributes to the firm’s revenue, incentivizing advisors and sales teams.

Factors include the type of investment product sold, the firm’s fee structure, and market conditions affecting sales volumes.

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