For 12b-1 Fees we have terms and definitions in 3 topics. The topics are Finance, Frauds and Scams and Securities.

12b-1 Fees (Finance)

The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor a 12b-1 fee.

12b-1 Fees (Frauds and Scams)

1. A fee that is levied by a mutual fund--usually on a yearly basis and is usually about 1% or less of a fund's assets. The monies collected are usually used to pay broker-dealers for servicing accounts. A mutual fund that charges a 12B-1 fee must disclose this in writing. Mutual funds that assess 12B-1 fees generally are no-load funds.

12b-1 Fees (Securities)

Advertising and promotional costs incurred by a mutual fund and charged against the assets in the fund under a Rule 12b-1 plan filed with the SEC. Funds filing a 12b-1 plan may distribute the shares themselves or distribute them through an underweriter and charge an additional sales load. The maximum 12b-1 fee charge is .75% of net assets.

Similar

Browse words that start with:

• 12
• 12b
• 12b-
• 12b-1

Browse All Terms by First Letter

Term Search