Business / Taxes / Sales Charge: A sales charge is the fee you pay to buy shares of a load mutual fund or other investment purchased through a financial professional. The charge is typically figured as a percentage of the amount you invest. As the size of your investment increases, the rate at which you pay the sales charge may decrease. Each dollar amount at which there is a corresponding reduction in the charge is known as a breakpoint. For example, the rate may drop from 4.5% to 4.25% with an investment of $25,000. The sales charge on a mutual fund may be imposed as a front-end load when you buy (also known as a Class A share), as a back-end load when you sell (also known as a Class B share), or as a level load each year you own the fund (also known as a Class C share).
Charge Verb Synonyms: fill, imbue, load, instil, pervade, permeate, saturate, suffuse
Charge Noun Synonyms: load, burden, weight, onus, impediment, care, concern, obligation
Business / Taxes / Contingent Deferred Sales Load: A contingent deferred sales load, also called a back-end load, is a sales charge some mutual funds impose when you sell shares in the fund within a certain period of time after you buy them. These sha MORE
Business / Finance / Redemption Charge: The commission a mutual fund charges an investor who is redeeming shares. For example, a 2% redemption charge (also called a back end load) on the sale of shares valued at $1000 will result in payment MORE