Business and Personal Finance Dictionary

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• CONTINGENT DEFERRED SALES LOAD
  
  Some mutual funds impose a sales charge, called a back-end load or contingent deferred sales load, when you sell shares in the fund within a certain period of time after you buy them. That period, which might be as short as a few months or as long as several years, is determined by the fund. The charge is a percentage of the amount of the investment you're liquidating and may be the same say 1% during the entire period it applies, or it might begin at a higher percentage and decline each year until it disappears entirely, typically over five to seven years. Information about the charge and how long it's levied is provided in the fund's prospectus.
  
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