You thought the building cost a million bucks, but you forgot about acquisition fees. There was the commission, the bug inspection, the guy who crawled around the roof and under the building, looking at plumbing, pipes, and electrical wires, and another guy who stomped around the roof checking shingles.
You had closing costs, like filings you had to make with the city, and then final construction inspection fees, and other random fees, like the "coffee bar access" fee, and you didn't realize that egress down the hall into the corporate washroom with the fountain cost another five grand. But what could you do? Just hold it all day?
Acquisition fees are some form of commissions, and are just leakage on top of the purchase price of things you can buy.
Related or Semi-related Video
Finance: What is an Investment Adviser, ...4 Views
Finance allah shmoop what is an investment advisor or registered
investment adviser All right well an investment advisor with no
other special nomenclature is the guy in your left at
the craps table screaming in your ear play the past
line play the past line he's just advising you as
to where you're going to quote invest unquote your slippery
five bucks But when an investment advisor actually gets serious
they have to register generally in the state or states
in which they're doing business and we mean geographic states
not like euphoria and depression Structurally they have to know
how the markets work all kinds of ethical and fiduciary
obligations that they'll hold for clients they have to understand
the mathematics of brokers and brokerages and the basics of
risk Most registered investment advisors have at least a serious
sixty five exam behind them not a whole lot more
like the series seven a bunch of others mainly because
investments never goes smoothly and someone always ends up getting
sued for bad advice So when firms hire registered investment
advisors they at least want the protection of being able
to point to an exam that the broker past that
Presented basic competence in their understanding of what they were
at least supposed to have done The key The limiter
here between the craps table guy in the registered investment
adviser is compensation Largely The craps table guy offers his
opinion for free The aria charges money or at least
wants to and as soon as cash changes hands and
formal manner while the rules and responsibilities and whole set
of fiduciary obligations get a whole lot less you know 00:01:46.149 --> [endTime] dicey
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