REDEMPTION CHARGE


Meaning of REDEMPTION CHARGE in English

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.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.