CDSCs financial definition of CDSCs. CDSCs finance term by the Free Online Dictionary.

Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.

Contingent Deferred Sales Charge

The formal name for the load in a back-end load fund. A CDSC is the fee paid when a shareholder sells shares in a mutual fund within a certain number of years. That is, when an investor initially buys a share in a back-end load fund, he/she agrees to pay a third party, usually a financial institution or broker, a certain percentage of the share's value if he/she decides to sell it within five to 10 years, depending on the specific nature of the agreement. The CDSC usually declines by the year until the maximum number of years is reached. See also: B-share.

contingent deferred sales charge

A mutual fund redemption fee that is reduced or eliminated for specified holding periods. For example, a fund might charge a 6% redemption fee for a holding period of less than one year, a 5% fee for a holding period of one to two years, and so forth. Mutual funds with a contingent deferred sales charge also generally levy an annual 12b-1 fee.

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Back-End Load Back-End Load Fund Contingent Deferred Sales Load Deferred Sales Charge Exit Fee Load Share Class	Class B share CDSCs generally decline over the time that an investor holds the shares and usually ultimately expire after a period of years, at which time Class B shares often convert to Class A shares. NASD Settles Cases Against MML Investors Services, NYLIFE Securities, ... by PR Newswire 117) To appreciate the significance of the CDSCs' development and the competitive pressures CDSCs have exerted, it is necessary to understand how selling effort is compensated for load funds. V. Rule 12b-1 in practice by Freeman, John P. / The Journal of Corporation Law 232) Use of 12b-1 fees in tandem with CDSCs was a marketing success, but came with a moral price tag, since charging spread loads involved trading in consumer deception. VI. The acid test: does rule 12b-1 benefit mutual fund shareholders? by Freeman, John P. / The Journal of Corporation Law	Caveat emptor, caveat subscriptor caveats CAX CBD CBO CBOE CBOE NASDAQ Volatility Index CBOE Volatility Index CBOT CC CCA CCAB CCC CCIM CCO CCR CD CD Annuity CDC CDF CDN CDNX CDO CDO squared CDS CDSCs cease and desist Cease-and-Desist Order CEC Cedant Cedante Cede & Co. CEDEL Cedento ceiling Celler-Kefauver Antimerger Act cemetery lots Census Bureau census tract Cent Centas Centavo Centesimo Centime Central African CFA Franc central appraisal district Central Assets Account Central Bank Central Bank Intervention Central Bank of Brazil Central Bank of Iceland	Cdrw Cdrw CDRWG CDS CDS CDS CDS CDS CDS CDS Application Support Programs CDS method CDs-From-The-Artist dot com CDS-ISIS CDS-PP CDS/ISIS CDS/ISIS for Windows CDSA CDSA CDSAR CDSB CDSBC CDSBEO CDSBL CDSC CDSC CDSCA CDSCC CDSCNI CDSCO CDSCP CDSCs CDSD CDSDHSO CDSE CDSEI CDSEM CDSF CDSFA CDSFB CDSG CDSH CDSHK CDSI CDSJ CDSL CDSL CDSL CDSLs CDSM CDSMC CDSMP CDSN CDSO CDSOA CDSOM CDSORG CDSP CDSP

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Back-End Load
Back-End Load Fund
Contingent Deferred Sales Load
Deferred Sales Charge
Exit Fee
Load
Share Class

Class B share CDSCs generally decline over the time that an investor holds the shares and usually ultimately expire after a period of years, at which time Class B shares often convert to Class A shares.

NASD Settles Cases Against MML Investors Services, NYLIFE Securities, ... by PR Newswire

117) To appreciate the significance of the CDSCs' development and the competitive pressures CDSCs have exerted, it is necessary to understand how selling effort is compensated for load funds.

V. Rule 12b-1 in practice by Freeman, John P. / The Journal of Corporation Law

232) Use of 12b-1 fees in tandem with CDSCs was a marketing success, but came with a moral price tag, since charging spread loads involved trading in consumer deception.

VI. The acid test: does rule 12b-1 benefit mutual fund shareholders? by Freeman, John P. / The Journal of Corporation Law

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Contingent Deferred Sales Charge
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