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12b-1 funds

Financial DictionaryCampbell R. Harvey's Hypertextual Finance Glossary
Mutual funds that do not charge an upfront or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12b-1 (passed in 1980).
Copyright © 2000, Campbell R. Harvey

 

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