Amount paid to an underwriter who agrees to purchase any stock that is not subscribed to the public investor in a rights offering.
Similar financial termsStandby agreement
In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.
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.
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.
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.
The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their underwriting risk.
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.
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.
The portion of total fees in a syndicated credit that go to the participating banks.
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.
The fee paid on the extension date if the buyer wishes to continue the option.
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.
Fees charged by an institution that holds securities in safekeeping for an investor.
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.
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.