Impose

DEFINITION of 'Impose'

The act of placing a fee, levy, tax or charge on an asset or transaction to the detriment of the investor. The imposition of fees is a common practice in most investment products and services, and may be used as a deterrent to selling or exiting a financial position early.


INVESTOPEDIA EXPLAINS 'Impose'

Fees are inevitable, regardless of whether you are a small retail investor or a multinational investment bank. Just about every financial service involves a payment to the party that helps to facilitate the transaction. Most fees should be made known to investors before they purchase a new security or move funds in a way that will incur a charge of some kind.

Many fees are imposed not at the time of transaction, but instead levied on an annual basis as a percentage of assets or holdings.

RELATED TERMS
  1. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  2. Levy

    The legal seizure of property to satisfy a debt. In the U.S., ...
  3. Deferred Charge

    A prepaid expense that is treated as an asset on a balance sheet ...
  4. Special Assessment Tax

    The levy assessed against the portion of a property that has ...
  5. Volcker Rule

    The Volcker rule separates investment banking, private equity ...
  6. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
Related Articles
  1. Mutual Funds & ETFs

    Stop Paying High Mutual Fund Fees

  2. Options & Futures

    The Ins And Outs Of Bank Fees

  3. Mutual Funds & ETFs

    Mutual Funds Are Awesome - Except When ...

  4. Investing Basics

    The 10 Biggest Latin American Banks

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...