exchange privilege

Definition

A feature offered by some mutual fund families in which an investor is able to switch from one mutual fund to another within the fund family without having to pay a sales charge. The IRS treats the exchange as a sale and purchase for tax purposes.

Cite this definition


Related Terms

switching, privilege

Related Articles from the InvestorGuide.com University

Bond Mutual Funds
A conservative investment to yield regular payoffs, there are three types of bond mutual funds: US government bond funds, municipal bond funds, and corporate bond funds.  Click to find more about which investment is best for you.

Fees and Expenses
Before you invest in a fund, you should investigate the fees and expenses that they may charge. Learn about loads, management fees, 12b-1 fees, and others. Discover how to use a fund's expense ratio and turnover ratio to find beneficial information before you invest.

Basic Mutual Fund Concepts
Describes some of the terminology necessary to understand mutual fund investments, including open-end, closed-end, net asset value, public offering price, dividends and capital gains distributions, family, share classes, and dual-purpose fund.



Related Resources from InvestorGuide.com

Mutual Fund Research Tool
Use our research tool to find in-depth data about mutual fund quotes, news, data, and profile information. Click here to view our mutual fund list or enter a mutual fund ticker here:

   

Featured Sponsor




Start earning $200 to $900 a day working at home. No experience necessary. Money-back guarantee.


Give this definition a rating from 1 to 5 (5 being the best)...
1    2    3    4    5    
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Add this Glossary to your Site | Bookmark InvestorWords.com
Home | Terms by Subject | Keyword Advertising | About Us | Contact Us
Work for InvestorWords.com
BusinessDictionary.com | InvestorGuide.com | WebFinanceInc.com
Disclaimer and Copyright©

Copyright©1997-2008 by WebFinance, Inc. All Rights Reserved.
Unauthorized duplication, in whole or in part, is strictly prohibited.