Front end load

• A sales charge or commission paid for an investment at the time of purchase.

• (1) A mutual fund commission or sales fee that is charged at the time shares are purchased. The load is added to the net asset value of the shares when calculating the public offering price. See also back-end load. (2) A system of sales charge for contractual plans that permits up to 50% of the first year's payments to be deducted as a sales charge. Investors have a right to withdraw from the plan, but there are some restrictions if this occurs. See also: Back-End Load.

• Refers to charges which are imposed upon the purchase or acquisition of an investment position. Many times these charges are on a sliding scale. Sometimes, these charges are viewed as impediments for early withdrawals. They are called front-end because they occur at the beginning of the investment process.

 Embedded terms in definition
Mutual fund
Net asset value
Public offering
Sales charge
 Related Terms

<< Frn Front fee >>

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...

Integrity without knowledge is weak and useless, and knowledge without integrity is dangerous and dreadful. - Samuel Johnson


Copyright 2009-2019 GVC. All rights reserved.