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. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center