expenses investment & finance definition
The costs incurred by a business. Expenses include everything from lease payments to payments for office equipment to salaries. Expenses are subtracted from revenues to arrive at net income.
Expenses That Come With Mutual Funds
Navigation: Online Investing » Stocks » Expenses That Come With Mutual Funds ...
Expenses
(1) the cost of resources used to create revenue. (2) the cost of goods or services acquired in the performance of a job. (3) anything paid out to attain a goal or accomplish an act. All expenses are costs, but not all costs are expenses.
Expenses that cannot be adjusted or eliminated such as Car payments or rental payments. Antithesis of flexible expenses.
Related Links: ...
Other Expenses
Included in this category are expenses not included in the categories "Management Fees" or "Distribution [and/or Service] (12b-1) Fees.
Expenses incurred while looking for a new job in the same line of work, whether or not a new job is found. These miscellaneous Itemized Deductions for tax purposes are subject to the 2% AGI floor.
A fund's expenses, which cover several fees and costs, are a significant determinant in overall performance.
Operating Expenses
An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is is a day-to-day expense that is incurred while running a business.
In summary expenses are a part of doing business with mutual funds. You the investor will have to determine relative to the amount of expected return, what you are willing to pay on an annual basis.
Operating Expenses
Can you help us? Take a quick survey!
Explanation of Operating Expenses: ...
The operating expenses incurred by a mutual fund are a combination of fixed and variable costs. As the asset of a mutual fund increases, the fixed cost gets spread over a larger asset base.
Many people know little about what type of expenses may be used as tax deductions.
As you might expect, fees and expenses vary from fund to fund. A fund with high costs must perform better than a low-cost fund to generate the same returns for you.
One of the most important concepts in investing in stocks is to keep your expenses down.
The obvious reason is you can't get ahead if you keep giving back profits through expenses. There are several areas where expenses and costs come into play: ...
Expenses - The costs of operating the syndicate for which the senior manager may be reimbursed.
Management Fee - The amount paid to the senior manager and/or co-managers for handling the affairs of the syndicate.
Expenses
In order to make money, most companies need to spend money. That's what an expense is all about.
Expenses and income - any expenses associated with your SDRP investments must be paid for out of the plan and any income must be paid into the plan.
Expenses - A cost or a deduction from a company's income. A company's total sales less total expenses equals net income.
Expiration Date - The day an option contract expires.
F ...
Expenses - Fund shareholders pay expenses that go towards the operation and management of the fund. Expenses are often less than 1% of the investor"s holdings in the value. In comparison, unit trusts are much less than that of a broker.
Low Expenses of Exchange Traded Funds
The cost of running an ETF or mutual fund is passed on to investors by means of the expense ratio.
[edit] Expenses matter relative to investment type
There are 3 broad investment categories for mutual funds (equity, bond, and money market - in declining order of historical returns).
Moving Expenses
Potentially tax-deductible expenses that are incurred when an individual and his or her family relocates for a new job or due to the location transfer of an existing job.
Claims expenses Expenses incurred to investigate and settle insurance claims (e.g., investigation, adjustment and legal fees).
Accrued Expenses
Business expenses that have not been paid off. Listed on an income statement.
After-Hours Trading ...
Accrued expenses
Expenses incurred during a given accounting period for which payment has not yet been made.
Accrued interest
Interest that has accumulated on a bond since the last interest payment was made.
Expenses not due to the basic business of company.
Non-operating Income
Income not derived from basic business of company ...
Expenses are a decent indicator of a fund's suitability for most investors. The lower the cost, the more simple and well-diversified the fund usually is.
Expenses including management fees, custody charges etc. are calculated on a daily basis. The management fees is as per the declaration in the offer document of the mutual fund.
Click here for Stock Trading Tutorials ...
Expenses matter over the long term, and of course, cheaper is usually better. You can find the expense ratio in the prospectus. Expense ratios are critical in index funds, which seek to match the market.
Fund expenses are worth close attention in choosing a mutual fund. High expenses can be a sign of greedy fund management as well as an indication that the fund will have a hard time outperforming the market as a whole.
Fixed expenses represent a major element of the overhead expenses of the firm. As mentioned, they do not fluctuate with changes in production or the sales volume.
Where expenses exceed revenue in a given fiscal period and net income is below zero.
CATEGORIES
Case Studies
Foreign Markets
Intermediate Investor
Investing for Retirement
Investment Basics
Stock Picking ...
Living expenses are only one part of the financial equation. Next you must consider how much trading capital you need.
Accrued Expenses: expenses shown on the income statement but not yet paid.
After-Hours Trading: stock trading when the major stock exchanges are closed.
Aftermarket: public trading of a company's shares after its IPO.
Flexible expenses
Expenses for an individual or corporation that can be adjusted or completely dispessed with, e.g., luxury goods.
Revenue - Expenses = Net Income (Loss)
The income statement measures company performance over a specific period of time.
Operating expenses
The business expenses that mutual fund companies pass on to shareholders, including management fees and 12 b-1 fees. These costs are paid from a fund's assets before earnings are distributed to shareholders.
Option ...
Deductible Expenses that can be offset against assessable income to reduce the amount of tax payable.
Dividend The payment of a company's earnings to its shareholders. The dividend is usually expressed as an amount per share.
Commission expenses are included in your calculation of the total gain or loss from your trading activity. Include commissions in your total cost basis of any stock or option you purchased.
Frictional Expenses - The Hidden Investment Tax
What Is a Bond?
Bonds 101 - A Beginner's Guide
Related Articles ...
Operating expenses
The amount paid for asset maintenance or the cost of doing business. Earnings are distributed after operating expenses are deducted.
Other fees/expenses - Make sure you understand ALL potential fees your broker could charge you! ...
miscellaneous expenses
$1,200
The above schedule is very general, but you get the picture. Incidentally, if you go through the tax organizer carefully, you'll find the requisite "Q&A" boxes where you can input your summarized totals.
A process that expenses the value of an intangible asset over time.
Related Terms:
Rollover
Process whereby the settlement of a deal is rolled forward to another value date. The cost ...
One way to cut expenses is to reduce and/or eliminate the dividend payout. So the illusion of being one of the best dividend stocks was in fact just that, an illusion.
Accounting for expenses or charges as applicable rather than as paid. Includes such practices as depreciation, depletion, write-off of intangibles, prepaid expenses and deferred charges.
Analyst ...
The higher the expenses, the less the profit.
Debt isn't necessarily a bad thing. It can be used to grow a company, finance new projects, or otherwise enhance the business. Debt only becomes a problem if it can't be managed properly.
fixed expenses See fixed cost. fixed income Fixed Income in finance refers to securities that offer constant and predictable... fixed income equivalent A convertible security for which the market price of the common stock is so...
Deductible: expenses that can be offset against assessable income, or some contributions to superannuation funds are tax deductible to individuals.
Underlying Fund Expenses - You will also indirectly pay the fees and expenses imposed by the mutual funds that are the underlying investment options for your variable annuity.
Deductible expenses: expenses that can be offset against income assessable for tax. Some contributions to superannuation funds may be deductible to individuals.
Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund can be divided into two or three main components: management fee, non-management expense and other service fees.
The point at which expenses and income are equal. This is the threshold above which a business or transaction becomes profitable.
Bull market
A strong general rise in stock prices, usually over a longer period. Opposite of a bear market.
[Harvey] 12B-1 fees The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.
Payments to mutual fund shareholders of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
Income Fund ...
12(b)-1 Fee Fee assessed shareholders by the mutual fund for some of its promotional expenses.
Income statementA statement showing the revenues, expenses, and income (the difference between revenues and expenses) of a corporation over some period of time.
Credit Money loaned to an individual to carry out a project, make a purchase or cover unexpected expenses. Credit bureau Information centre on consumer credit use.
a fixed number - of WEBS shares by depositing the appropriate underlying shares, plus cash expenses (WEBS shares) with an "Authorized Participant" in exchange for WEBS shares (underlying shares, less cash expenses).
for doing so, he notes, are varied: - Spending addictions - Lack of budgeting (mistaking the amount of money coming in and going out) - Loss of income (reduced hours, layoffs, forced to leave the workforce) - Increased costs (health-related expenses, ...
 See also: Stock, Market, Investment, Share, Interest
|
