Exit Fee
Categories: Tax
Jean Paul Sartres has nothin' on this term.
An exit fee. A way to make money at a really terrible nightclub: no cover charge coming in, but a fee at the door on the way out. It sits right next to fi fo fum.
It also represents a fee that comes up in mutual fund sales.
You invest in a mutual fund. You buy shares and hold it for a few years. The value of the fund increases and now you want to sell in order to pay for this clown-themed night club you want to open (yes, an exit fee is a big part of your business plan).
When you sell your shares in the mutual fund, the company charges you an exit fee...one last charge headed out the door.