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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
 

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