Costs & Fees
Bid-Offer Spread
Definition
What is Bid-Offer Spread?
The difference between the price at which units can be sold and the price at which they can be bought.
Example in practice
How This Looks in Practice
A $9.80 bid and $10.00 offer create a $0.20 spread, or 2% of the offer price.
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Related Terms
Costs & Fees
Management Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.
Costs & FeesExpense Ratio
A fund's annual operating expenses expressed as a percentage of its average net assets.
Costs & FeesEntry Load
A charge deducted when an investor subscribes to a fund.
Plans & OptionsAccumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.