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Class A Shares
(redirected from Mutual Fund Class A Shares)

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Class A Shares
Shares in a mutual fund with a front-end load. For class A shares, a certain amount of one's investment is deducted for the commission of mutual fund's salesperson. This lowers the size of the investment in the mutual fund. For example, if one invests $50,000 in a mutual fund, a certain amount, say $1,000, is deducted for the commission, resulting in only $49,000 actually being invested in the fund.


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FINRA found that Banorte Securities International recommended Class B shares of off-shore mutual funds to its customers in certain transactions where the customers would have financially benefited from purchasing Class A shares - particularly since the firm had negotiated lower front-end sales charges for off-shore mutual fund Class A shares with several mutual fund companies.
 
 
 
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