Back fee

Similar financial terms

Back-end value
The amount paid to remaining shareholders in the second stage of a two-tier or partial tender offer.

Back office
Settlement and related processes where brokerage houses perform clerical operations that support, but do not include, the trading of stocks and other securities. Includes all written confirmation and settlement of trades, record keeping and regulatory compliance.

Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back to the extent required to cover any cash deficiency of the project.

Swap buy-back
The sale of an interest rate swap by one counterparty to the other, effectively ending the swap.

Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their use in meeting special needs of investors.

Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.

Payback
The length of time it takes to recover the initial cost of a project, without regard to the time value of money.

Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected spot price.

Mortgage-backed securities (MBS)
Securities backed by a pool of mortgage loans.

Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed MBSs transacted for forward delivery.

Lookback option
An option that allows the buyer to choose as the option strike price any price of the underlying asset that has occurred during the life of the option. If a call, the buyer will choose the minimal price, whereas if a put, the buyer will choose the maximum price. This option will always be in the money.

Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into sale and lease-back transactions.

Back-end loan fund
A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time, such as one year. The commission decreases the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge (CDSC).

Back-to-back financing
An intercompany loan channeled through a bank.

Back-to-back loan
A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed upon maturity.

Back-up
(a) When bond yields and prices fall, the market is said to back-up. (b) When an investor swaps out of one security into another of shorter current maturity he is said to back up.

Backwardation
A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This situation may occur in when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango.

Buy-back
Another term for a repo.

Buyback
The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity. Also used in the context of bonds. The purchase of corporate bonds by the issuing company at a discount in the open market. Also used in the context of corporate finance. When a firm elects to repurchase some of the shares that trade in market.

12(b)-1 Fee
Fee assessed shareholders by the mutual fund for some of its promotional expenses. A 12b-1 fee must be specifically registered as such with the Securities and Exchange Commission and the fact that such charges are levied must be disclosed.

Arrangement Fee
Whilst some lenders charge an administration fee others may charge an arrangement fee. The arrangement fee is charged to cover administration and primarily reserving the funds for fixed rate and/or discounted rate mortgages. This fee may be paid separately added to the mortgage or in rarer cases taken from the mortgage loan.
Arrangement fee is commonly added to the spread in eurosyndicated and syndicated loans.

Booking Fee
Another term to describe a fee which is payable upfront to either source or reserve funds for a mortgage. Usually applicable for fixed or capped rate mortgages.

Underwriting fee
The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their underwriting risk.

Take-up fee
A fee paid to an underwriter in connection with an underwritten rights offering or an underwritten forced conversion as compensation for each share of common stock he underwriter obtains and must resell upon the exercise of rights or conversion of bonds.

Standby fee
Amount paid to an underwriter who agrees to purchase any stock that is not subscribed to the public investor in a rights offering.

Split-fee option
An option on an option. The buyer generally executes the split fee with first an initial fee, with a window period at the end of which upon payment of a second fee the original terms of the option may be extended to a later predetermined final notification date.

Participating fees
The portion of total fees in a syndicated credit that go to the participating banks.

Management fee
An investment advisory fee charged by the financial advisor to a fund based on the fund's average assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases.

Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.

Custodial fees
Fees charged by an institution that holds securities in safekeeping for an investor.

Drip feed
The continual investment of capital in a small and growing company as the company needs it, rather than investing a lump sum at the company's inception.

Redemption Fee
A charge assessed against an invetor for redeeming shares or interests in a fund. Often this charge is used for early or premature withdrawals. This feature is more common for funds investing in illiquid securities or emerging market funds and annuity products.