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    aryan.mann47's Avatar
    aryan.mann47 Posts: 6, Reputation: 1
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    #1

    Jan 20, 2011, 11:32 PM
    What is an expense ratio?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Jan 20, 2011, 11:39 PM

    It is the relationship of a particular expense to net sales.

    particular expense/net sales

    edited to add:
    I gave you the accounting definition, but I noticed you asked another question about investments.

    Expense ratio can also be a measure of what it costs an investment company to operate a mutual fund. In this case, it is the fund's operating expenses divided by the average dollar value of assets under management.
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