Quote:
Originally Posted by PeterMorley
Meanwhile the investment house/dealer/auction still take their cut when the "investment" is sold, so they don't really care whether the price is higher or lower than when they sold it.
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Not quite so, Peter. Most "middlemen" that you mention usually charge a fixed percentage fee regardless whether that is for purchase or sale, meaning that their cut is lesser the lower the sale price achieved.
This is one of the myriad reasons that there has been behind the consolidation within the life assurance industry. As returns on investments saw investment funds either stagnating or even losing value, so their fees and charges reduced. This left many companies unprofitable.