Fee Structure

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Entrance Fee

    A term that can refer to any charge for admission. However, it ...
  2. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
  3. Management Fee

    A charge levied by an investment manager for managing an investment ...
  4. Surrender Fee

    A charge levied against an investor for the early withdrawal ...
  5. Exit Fee

    A fee or charge assessed to an investor for withdrawing money ...
  6. Redemption Fee

    A fee collected by an investment company from traders practicing ...
Related Articles
  1. Paying Your Investment Advisor - Fees ...
    Investing Basics

    Paying Your Investment Advisor - Fees ...

  2. Fee-Based Research: The Good, The Bad ...
    Options & Futures

    Fee-Based Research: The Good, The Bad ...

  3. Dispelling 5 Myths About Financial Planners
    Budgeting

    Dispelling 5 Myths About Financial Planners

  4. Hedge Funds: Higher Returns Or Just ...
    Options & Futures

    Hedge Funds: Higher Returns Or Just ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center