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front-end load
front-end load definition - finance
A
sales charge on a
mutual fund that is assessed when shares of the fund are purchased. This charge
often goes to pay the selling broker in the form of a commission. A front-end
load charge is different from a 12b-1 fee, which is deducted from the fundÂ’s
assets and used to pay for marketing and distribution expenses. A mutual fund
without a sales charge is called a no-load fund.
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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