Type of commission tructure where a sales charge is paid by the client when shares are purchased.

A sales charge applied to the initial or incoming dollars of an investment. Typically used in mutual funds and annuities. | back to educate yourself

Refers to the sales charge imposed on investors entering certain mutual funds that have sales charge or load. Front end loads are capped at 8.5% by regulators.

Sales charge applied to an investment at the time of purchase.

This is the commission negotiated between the dealer representative and the investor. It is charged to the investor at the time of the purchase. Therefore, the purchase is net of the commission paid to the dealer representative and the redemption is without a load or commission charge. The front-end commission is 0-6% for all funds, with the exception of money market which is 0-2%.