|
|
Some definitions
I have been asked to define a few of the terms I list, mainly for the benefit of newer investors, so:
- Tender Fee
- A tender offer is an offer from the issuer to buy back a security directly from the holder. It is often (but not always) to the investor's advantage to accept the offer. The tender fee is a fee charged by the broker to execute this transaction. Brokers will often charge the same fee for other kinds of "voluntary reorganization", and a few brokers charge as well for mandatory reorganizations, such as the conversion of mandatory convertible securities.
- DTC Out
- A DTC transfer is the transfer of one or more securities from one broker to another using the brokers' electronic transfer system. Most brokers charge you to transfer a security out to another broker, but not to accept an incoming transfer from another broker. The various brokers mark the fee "per position", "per request", etc.. I suspect that all of these expressions mean the same thing, but I decided that it would be safer to copy their language.
- ACAT Out
- ACAT transfers are electronic transfers normally used to move one's entire account from one broker to another. The broker from which you are transferring your account will usually (but not always) charge for this service. Sometimes this charge seems rather high, and you can view it as your current broker's way of punishing you for transferring your account to another broker.
You can request additions to this list by email.
|