Legal Definitions - 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.