A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- BrokerA firm or person that carries out your orders to buy and sell investments, often for a fee or commission.
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Management FeeThe charge a fund or advisor collects for managing your investments, often a yearly percentage of your balance.
- Load FundA mutual fund that charges a sales fee when you buy or sell, reducing the amount that goes to work for you.
- Expense RatioThe yearly fee a fund charges, shown as a percentage of your investment, that covers its operating costs.
- Market OrderAn instruction to buy or sell an investment right away at the best price currently available.
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Plain-English education — not personalized legal, tax, or investment advice.