Where does the revenue come from?

Trading noob here so bare with me.

Do sales and trading departments at BBs make their money from:

a) executing transactions for clients and taking a percentage (e.g. client asks to buy stock A, S&T buy for price X and charge them X + a few bips)

b) client asks S&T to buy stock A, S&T quote him price X (includes risk), and S&T tries to get it for a lower price, keeping (or absorbing) the difference

c) combination of the two

d) neither of the two

Thanks

Region
 

I'm sure there are many roads to Rome, but this is the most common one I've seen: A) Client says; Buy 10k AA @ 14.95 high. After the order is executed, lets say 14.93, add som points (vary if you're trading through ie. Goldman Sachs' platform Reddi or Fidessa) and the client gets their order. Also a fee (lets say 0.5% for some clients) is added.

CNBC sucks "This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
 

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