Financial Definition of Redemption Charge
Meaning of Redemption Charge
The commission charged by a mutual fund when redeeming shares. For example, a 2% redemption charge (also called a “back end load”) on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decrease or be eliminated as shares are held for longer time periods.
Related Entries of Redemption Charge in the Encyclopedia of Law Project
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Redemption Charge in Historical Law
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Legal Abbreviations and Acronyms
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| Redemption Charge in the Dictionary | Redemption Charge in our legal dictionaries |
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| Related topics | Redemption Charge in the World Encyclopedia of Law |
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