A sales charge deducted from an investment for exiting early, or before the sales charge ceases to exist. Mutual fund class B and C shares often carry a deferred sales charge. Also called back end load, CDSC or contingent deferred sales charge.
A type of back end load sales charge, a deferred sales charge is a fee charged when shares are redeemed within a specific period following their purchase.
see "back-end load" (above).
A fee charged when an investor sells back shares during the first few years of ownership.
The charge or fee an investor pays when withdrawing money from an investment. Most commonly occurring with mutual funds and annuities, the deferred sales charge is designed to discourage withdrawals. Typically, deferred sales charges decline for each year a shareholder remains in a fund.