Mutual Funds Can Carry a Number of Different Types of Sales

question 118

Essay

Mutual funds can carry a number of different types of sales charges and fees. Briefly explain the following such expenses.
(a) a front-end load
(b) a back-end load
(c) a 12(b)-1 fee

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Definitions:

Economic Profit

The distinction between the income generated from selling a product and the opportunity cost of the resources utilized.

Price

Price is the amount of money required to purchase a good or service, often determined by the balance of supply and demand in a market.

Economic Profit

The excess of total revenue over total costs, including both explicit and opportunity costs.

Price

The sum of money needed to buy a product or service.