The transfer of trading costs caused by investors entering or leaving a fund to the investors who remain in it.
From this site’s articles, on mutual funds under stress: "Dilution effects may be spread across remaining shareholders."
Quoted passages come from the articles on this site.
Covered in: Why ETFs Surface Liquidity Constraints Faster Than Mutual Funds
Related terms
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This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
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