Advertising

Back end load

• A sales charge or commission for an investment paid by the buyer at the time of sale.

• Refers to charges which are imposed upon the redemption or liquidation of an investment position. Often these charges are on a sliding scale. Sometimes, these charges are viewed as early withdrawal penalties. They are called backend because they occur at the end of the investment process.

• A commission or sales fee that is charged upon the redemption of Mutual Fund shares or Variable Annuity contracts. It declines annually, and reaches zero over an extended holding period -- up to eight years -- as described in the prospectus. See also: Front-End Load; Contingent-Deferred Sales Load.

 
 Embedded terms in definition
 Annuity
Commission
Holding period
Liquidation
Mutual fund
Position
Prospectus
Redemption
Sales charge
Sales
Sale
Scale
Shares
Time
Variable annuity
Variable
 
 Related Terms
 

<< Back discount rate Back end loan fund >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

If you're going through hell, keep going. - Winston Churchill, Sir (1874-1965)

Advertising



Copyright 2009-2017 GVC. All rights reserved.