back-end load

back-end load definition - finance
A sales commission paid by an investor who purchases shares in a mutual fund or an annuity. Back-end loads are charged when the investor sells the investment. Often the sales charge, which is called a load, decreases the longer the investment is held, until some point, often several years out, when the sales charge disappears. Also called redemption fee or deferred sales charge.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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