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 Rediscount:
- Examples To discount short-term negotiable debt instruments for a second time, after they have been discounted with a bank redemption charge.
- Definition Reserve:
- Examples An accounting entry that properly reflects contingent liabilities redemption charge.
- Definition Risk-Adjusted Return:
- Examples Return earned on an asset normalized for the amount of risk associated with that asset redemption charge.
- Definition Real Estate:
- Examples A piece of land and whatever physical property is on it redemption charge.
- Definition Rollover:
- Examples Means that a loan is periodically repriced at an agreed spread over the appropriate, currently prevailing rate. Most term loans in the Euromarket are made on a rollover basis as to current LIBOR rate redemption charge.