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Finance Dictionary and Glossary of Investment Terms
The fee charged by a mutual fund at purchase of shares, usually payable as a commission to a marketing agent, such as a financial adviser, who is thus compensated for assistance to a purchaser. It represents the difference, if any, between the share purchase price and the share net asset value.
A fee charged by a broker or agent for his/her service in facilitating a transaction, such as the buying or selling of securities or real estate. In the case of securities trading, brokers can be split into two broad categories depending on the sales charges they charge. Discount brokers charge relatively low sales charges, but provide no services beyond executing trades. Full service brokers charge higher sales charges, but provide research and investment advisory services. also called commission.