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Finance Dictionary and Glossary of Investment Terms
exchange privilege
Definition 1.
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.
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Definition 2.
When a mutual fund shareholder has the opportunity to exchange a fund for another within the same family at no additional cost.
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Definition 3.
mutual fund shareholder's right to switch from one fund to another within one fund family, usually at no additional charge.
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