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 >>

Practical Advice for Everyone on How to Save and Manage Money: No matter how old or young you are, there are some basic things you can do to better manage and protect your money. Here are recommendations from FDIC Consumer News. More...

Never go to a doctor whose office plants have died. - Erma Bombeck

Advertising



Copyright 2009-2018 GVC. All rights reserved.