An annual fee charged by a number of open-end mutual funds that's supposed to be used to offset promotion and selling expenses is called the:

Question

Quizplus · Accepted Answer

The 12b-1 fee is an annual fee charged by mutual funds to cover marketing and distribution expenses. It is used to compensate brokers and other intermediaries for selling shares of the mutual fund. It is not a management fee, back-end load fee, transaction fee, or low-load fee.

An Annual Fee Charged by a Number of Open-End Mutual