Products & Their RisksQuestion 64 of 398
Class B mutual fund shares are best described as shares that:
a.Charge a front-end sales load at the time of purchase
b.Never impose any sales charge or 12b-1 fee
c.Are only available to institutional investors at NAV
d.Carry a contingent deferred sales charge that declines over time and often convert to Class A
Explanation
Class B shares impose a contingent deferred sales charge (CDSC), or back-end load, that is paid if shares are redeemed within a certain number of years and declines the longer they are held. They usually carry higher 12b-1 fees than Class A and often convert to Class A shares after the CDSC period ends.
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