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Legal Definitions - load
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Definition of load
Definition: An additional amount added to the price of a security or insurance premium to cover sales commission and expenses.
Example: A mutual fund may have a front-end load of 5%, meaning that 5% of the investment amount will be deducted as a sales commission and expenses.
Explanation: When investing in a mutual fund or purchasing insurance, a load may be added to cover the costs of the salesperson and other expenses. This load is typically a percentage of the investment amount and can vary depending on the product and the salesperson. The example illustrates how a front-end load works and how it affects the investment amount.
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Simple Definition
Term: LOAD
Definition: Load refers to an extra amount of money added to the price of a security or insurance premium to cover the sales commission and expenses. For example, when you buy a mutual fund, you may have to pay a load, which is a fee that goes to the person who sold you the fund. This fee is usually a percentage of the amount you invest. The load can be charged at the beginning of your investment (front-end load) or when you sell your investment (back-end load).
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