Which of the following statements about commissions in securities is true?

The statement indicating that commissions are the payments made for executing client orders accurately reflects the role of commissions in securities transactions. Brokers earn commissions as compensation for their services when they execute trades on behalf of clients. This payment structure incentivizes brokers to facilitate transactions and provide market access.

Commissions are a standard aspect of the brokerage industry and are typically calculated as a percentage of the transaction value or as a fixed charge based on the nature and size of the trade. Thus, this statement encapsulates the fundamental function of commissions within the financial markets, clearly distinguishing them from other fees or costs associated with securities trading.

Considering the other options, commissions are not optional payments or exclusively tied to primary markets, and they are not payments made to the SEC by the issuer. Each of these incorrect options fails to define how commissions operate within the scope of executing trades and serving clients in the securities industry.