Soft dollars

The value of research services that brokerage houses supply to investment managers "free of charge" in exchange for the investment manager's business/commissions. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Soft Dollars — A means of paying brokerage firms for their services through commission revenue, as opposed to through normal direct payments (hard dollar fees). The investing public tends to have a negative perception of soft dollar arrangements because they… …   Investment dictionary

  • soft dollars — /ˈsɒft dɒləz/ (say soft doluhz) plural noun (in finance) payment for services made other than with money …   Australian English dictionary

  • soft dollars — noun a rebate or commission paid with goods or services, rather than cash …   Wiktionary

  • soft dollars — The value of research services that brokerage houses supply to investment managers free of charge in exchange for the investment manager s business commissions. Bloomberg Financial Dictionary …   Financial and business terms

  • soft dollars — /sɒft dɒləz/ plural noun rebates given by brokers to money management firms in return for funds’ transaction business …   Dictionary of banking and finance

  • soft dollars — Securities industry term for credits that brokers give big investors, such as pension funds and their money managers, in return for their stock trading business …   Black's law dictionary

  • Soft commission — is commission given in a non cash form.Many investment funds prefer to buy things using soft dollars so they can avoid reporting direct expenses to investors who are highly cost sensitive. Thus, soft commission allow institutional funds to use… …   Wikipedia

  • Soft dollar — The term soft dollars is used to describe certain payments made by institutional investment funds to their service providers. In contrast to hard dollars (actual cash), which have to be reported on the fund s books, soft dollars are incorporated… …   Wikipedia

  • Soft Commissions — Any type of commission that is not paid in actual dollars. Soft commissions allow investment companies and institutional funds to cover some of their expenses through trading commissions. For example, receiving research from a counterparty in… …   Investment dictionary

  • soft cost — UK US noun [C, usually plural] ► ACCOUNTING money that is spent on labour, services, transport, etc. rather than on physical equipment: »Moving the building would have required scrapping several million dollars in architectural fees and other… …   Financial and business terms


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.