Purchase fee

Definition
Purchase fee
A shareholder fee that some mutual funds charge when investors purchase mutual fund shares. Not the same as (and may be in addition to) a front-end load.
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Purchase Fee
A purchase fee is another type of fee that some funds charge their shareholders when the shareholders purchase their shares.

Purchase Fee - a shareholder fee that some funds charge when investors purchase mutual fund shares. Not the same as (and may be in addition to) a front-end load.

Purchase fee
A charge assessed by an intermediary, such as a broker-dealer or a bank, for assisting in the sale or purchase of a security.

Front-loads and purchase fees are subtracted from the investor's purchase prior to the money being deposited into the account:
Front-End Load Example ...

For example, a no-load fund is permitted to charge purchase fees, redemption fees, exchange fees, and account fees, none of which is considered to be a "sales load.

No-Load Mutual Fund
A fund offered to the public that carries no purchase fee (front-end load) or redemption fee (back-end load).

you buy back 1,000 shares of Microsoft at $15 a share. Because of the wash rule, the IRS disallows your $20,000 loss. Your new basis for the repurchased stock would be $35 a share ($15 purchase price plus $20 loss on the sale), plus purchase fees.

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Topic: Stock market