Many mutual fund families often offer their funds with three share classes: A, B, and C. Which of the below correctly describes these three classes?

Question

Quizplus · Accepted Answer

A shares typically have a front-end sales charge, where investors pay a fee when buying the shares. B shares usually have a back-end sales charge, or a contingent deferred sales charge (CDSC), which investors pay when selling the shares. The CDSC typically decreases over time until it reaches zero. C shares usually do not have a front-end or back-end sales charge, but they do have higher ongoing expenses than A and B shares, known as level loads.

Many Mutual Fund Families Often Offer Their Funds with Three