Exchange privilege

A feature offered by some mutual Fund families in which an investor is able to switch from one mutual Fund to another within the Fund family without having to pay a sales Charge. The IRS treats the Exchange as a sale and Purchase for Tax purposes.

Related Terms: 10 Charge, Exchange, Fund, Fund family, Mutual fund, Offer, Purchase, Sales, Sales charge, Tax

Other Related Pages: Category: Taxes Starting With: E

Additional Related Terms: 1035 exchange, Allowance for depreciation, Accrual of discount, After-tax basis, American Stock Exchange, Amortization of premium, At par, All or any part, At best, At call