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 the Investment Advisers...32 Views
Finance a la shmoop. What is the Investment Advisors Act of 1940? [The question written on a blackboard]
All right well a whole lot of acting going on in that 1940 there, best actor Robert [1940s black and white film]
Donat best actress Vivien Leigh, best investment Act yeah this one well too
many poor uneducated folks got taken in the market gyrations of the wild stock [Girl looking offended]
market in the decade and changed before this act happened. So Congress then set
out a whole bunch of standards under which Investment Advisers must act yeah [Documents from the act]
see where we got that whole acting thing all right for example investment [The title of the act is highlighted]
advisors with more than 25 million bucks under their care must register with the [Advisor next to a big sack of money]
SEC making all of their actions quote aboveboard unquote and making it much
harder for fast-talkin city slickers to abscond with the hard-earned savings of [Adviser taking money away from people]
ma and pa farmer. Well the Act also outlined the structure under which
advisors can charge fees and it created the then path-breaking notion that an
investment advisor must put the interests of their client ahead of their [Advisor interests above client interests is swapped around]
own personal interests and this was like a thing back then yeah it sounds
shocking like you wouldn't need to explicitly state this in a modern polite
normal society but in fact the wild world of that era while the notion that [People at a show in the 40s]
you could not in fact actively steal your clients money so now is considered
liberalism go figure... [Liberalism stamp]
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