B-Share

AAA

DEFINITION of 'B-Share'

A class in a family of multi-class mutual funds. This class is characterized by a back-end load structure that is paid only when the fund is sold.

INVESTOPEDIA EXPLAINS 'B-Share'

Class B funds will generally have higher management expense ratios compared to front load funds within the same family. Fund companies attempt to increase their profits while the rear load is effective because it will normally decrease in value with time until no load is charged whatsoever.

Not all fund companies follow this class structure, but it is the prominent method of distinction.

RELATED TERMS
  1. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  2. A-Share

    In a family of multi-class mutual funds, this is the class that ...
  3. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  4. C-Share

    A class of mutual fund with a level load. Class C shares don't ...
  5. Front-End Load

    A commission or sales charge applied at the time of the initial ...
  6. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
Related Articles
  1. 4 Alternatives To Traditional Mutual ...
    Mutual Funds & ETFs

    4 Alternatives To Traditional Mutual ...

  2. The ABCs Of Mutual Fund Classes
    Retirement

    The ABCs Of Mutual Fund Classes

  3. Mutual Fund Basics Tutorial
    Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

  4. What is the minimum amount of money ...
    Retirement

    What is the minimum amount of money ...

Hot Definitions
  1. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  3. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  4. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  5. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena ...
Trading Center