Thanks for your reply, Crosenfield. Perhaps I should have been clearer in what I was contemplating. Etrade is offering frequent flyer miles for opening an account with them. I have to maintain the account with them for 6 months to get the miles. For simplicity's sake, I thought I would transfer the account to one of my other brokerage accounts after 6 months.

If I had bought stock at Etrade, no problem. I'd close the Etrade account and move the stock to another brokerage. The crux of my question (inelegantly worded at first) was, "What would happen if I bought a propietary Etrade mutual fund, such as the Etrade S&P 500 index fund?" I assume that Etrade would liquidate my holdings in the fund and send those dollars to the other broker. At this point, have I experienced a taxable event? I believe, as TMFExRO points out, the answer is "no" if I bought a non-propietary mutual fund (e.g., Janus or T. Rowe Price)?

BTW, I've been researching Etrade, and I'm not sure that the lure of frequent flyer miles is enough for me to open an account with them anyway. Still, I've gotten to learn about closing/transferring accounts.