What is the saving in brokerage commission

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Suppose that an investor places two separate orders of buying common stock of XYZ Ltd. First order is of buying 2,000 shares and the second order is of buying 8,000 shares. Each purchase is made at the price of $10. The brokerage commission charged for a non-block trade is 1.2% of the value of the transaction. 

Assume now the he/she places one order to buy 10,000 shares. The brokerage commission for a block trade is 0.1% of the value of the transaction.

What is the saving in brokerage commission due to block versus non-block trades?

Reference no: EM132403354

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