trailing commission

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Trailing Commission

A commission that the salesperson of a mutual fund receives each year an investor remains a shareholder. That is, the salesperson receives the first trailing commission when the investor first buys shares in the fund, and a new trailing fee each year thereafter. Critics of this practice point out that it can create a moral hazard that the salesperson will aggressively sell a fund because of his own financial incentive, rather than because he believes it to be a good investment for the potential shareholder. Not all mutual funds pay their sales staff trailing commissions. A trailing commission is also calling a trailer fee. See also: Load.

trailing commission

A commission paid annually to a sales agent for as long as a client's money remains in an account. Also called trailer fee.
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There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments.
Typically, trailing commissions -- the commissions from unfinished deals that follow a broker when they switch firms -- are "rife with concerns," said Laurie McPherson, a partner at the law firm Blank Rome.
This may include so-called 12(b)1 fees, trailing commissions, surrender charges and back-end fees.
Also, in July 2008, Jefferies began remitting all trailing commissions received for frozen ARS held in customer accounts directly to its customers on a go-forward basis, and as of October 2010, had remitted in excess of $868,000.
The OneSaas Partner Program provides training, sales and marketing support material, and generous trailing commissions.
Rather, mortgage brokers receive origination and trailing commissions on originated funds.
Similarly the acquisition of a representation contract by an operator may lead to the payment of some trailing commissions to the former contracted media representative company.
Cervus, Macquarie's recently acquired Canadian mortgage lender, works exclusively through mortgage brokers and has carved an industry niche through introducing broker trailing commissions, a new concept for the Canadian mortgage market.
Working exclusively through mortgage brokers, Cervus has carved an industry niche through introducing broker trailing commissions, which is new to the Canadian mortgage market.
E[acute accent]Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.
Commissions, trailing commissions management fees and expenses all may be associated with mutual fund investments.