Front end load

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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
	Asset Commission Mutual fund Net asset value Net Position Public offering Purchase Right Sales charge Sales Scale Shares Time

	Related Terms
	Back end load Back end loan fund Closed end fund Closed end investment company Closed end investment company or fund Closed end mortgage End of month End of year convention Front fee Front office Load fund Load to load No load No load fund No load mutual fund Open end fund Open end investment company Open end mortgage Year end

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