ShmoopTube

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Finance a la shmoop what is a break point?

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well waltz into a store willing to buy a lot and you can usually expect a [Man in a store holding stack of cash]

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discount or a freebie well the more you spend the more discounts stores are

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usually willing to pile on keep you buy-in and it works the same way with

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mutual funds buyers of mutual funds can get discounts once they get past break

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points like the minimum level where certain discounts are activated go past

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a certain break point and the commission on the buy might get slashed by a

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percent go above another break point and the commission will go even lower or [Bar rises above break points]

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disappear entirely..... buying shares of one-eyed man mutual fund company's

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flagship fund might cost you commission of 5.5 percent if you buy

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less than twenty five grand worth but if you buy five hundred thousand dollars

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worth of that mutual fund well, then the commission might be just one percent

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by over a million bucks and the commission might be free the broker will

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be paid out of the management fee of the company over time ie one-eyed pays the

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broker so yeah very important not to confuse a break point with this...That did [People watching Point Break movie]

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not win the Academy Award

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