Antitrust Laws

Definition: Laws protecting competition by prohibiting conduct such as price fixing, market allocation, and other unlawful restraints of trade.

Example

Competing brokers cannot agree that all firms will charge the same commission rate.

Keep the distinction clear

Each brokerage may independently set its own prices. Similar prices alone are different from an agreement among competitors to fix them.

Related terms

Price Fixing · Market Allocation · Collusion

Keep studying

Commission Math: Tiered Rates and Broker–Associate Splits

References: U.S. Department of Justice: price fixing and market allocation

Pronunciation (US): AN-tee-trust LAWZ (capitals show stress)

Pronunciation reference: Merriam-Webster