Mutual Funds
The sales charge on a mutual fund is called:
Load = sales charge. A-shares = front load. B-shares = back load (CDSC). C-shares = level load.
Complete Analysis & Legal Rationale
The sales charge on a mutual fund is called a "load." Front-end loads are paid at purchase, back-end loads (CDSC) are paid at redemption. No-load funds have no sales charges.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Management fees compensate the portfolio manager, not salespeople.
12b-1 fees cover marketing and distribution costs, not direct sales charges.
Matches the verified teaching point in the explanation.
Expense ratio is the total annual cost including management fees, not the sales charge.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.