Fee Structure

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DEFINITION of 'Fee Structure'

A chart or list showing the dollar amounts that a business charges for various services or activities. A fee structure lets customers or clients know what to expect when working with a particular business. Potential customers should always examine a company's fee structure to make sure they find it satisfactory before deciding to do business with them.

BREAKING DOWN 'Fee Structure'

The fee structure for an online auction website, for example, would list the cost to place an item for sale, the website's commission if the item is sold, the cost to display the item more prominently in the site's search results and so on. As another example, hedge fund's fee structure would show what the fund manager charges to run the fund, how much the fund manager will receive if the fund meets or exceeds predefined performance targets, and how much an investor must pay if he withdraws his funds prematurely.

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