Series 6 - Investment Company And Variable Contracts Products Representative Exam
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Which type of sales load is charged upon redemption of mutual fund shares; usually over the first 5 to 7 year holding period?
Front-end load
A
Back-end load
B
Level load
C
No-load
D
Explanations
The back end load is for Class B shares. Class B shares have no up front sales charge; but do charge a CDSC fee upon redemption. Each fund is different; but most back end loads will disappear after 7 years of ownership and the b shares can convert into a shares.