Meaning REDEMPTION CHARGE: The commission a mutual fund charges an investor who is 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 decline or be eliminated as shares are held for longer time periods
More terms such as Redemption charge in Dictionary R.
- Definition Risk-Adjusted Discount Rate:
- Examples The rate established by adding an expected risk premium to the risk-free rate in order to determine the present value of a risky investment redemption charge definition.
- Definition Registered Representative:
- Examples A person registered with the CFTC who is employed by and solicits business for a commission house or futures commission merchant redemption charge explain.
- Definition Runoff:
- Examples equity securities. Series of trades printed on the ticker tape that occur on the NYSE before 4:00 p.m., but are not reported until afterwards due to heavy trading that makes the tape late redemption charge what is.
- Definition Reorganization Bond:
- Examples A bond issued by a company undergoing a reorganization process redemption charge meaning.
- Definition Residential Mortgage:
- Examples Mortgage on a residential property, tax-deductible for individuals up to $1 million redemption charge abbreviation.