The Difference Between a "Redemption Fee" and a "Rear-End Load

The difference between a "redemption fee" and a "rear-end load" is that:

A) the redemption fee is another name for a 12b-1 fee, which is an annual expense associated with the fund.
B) a rear-end load is used to compensate a salesperson who has sold shares of the fund; a redemption fee is charged to offset the expenses a fund incurs in processing share redemptions.
C) the redemption fee refers to charges incurred by the fund when it sells securities it owns; the rear-end load is a fee that is incurred by investors in the fund when they redeem their shares of the fund.
D) There is no difference. These are synonymous terms.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free