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Trading Glossary:
12b-1 fee
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Definition: |
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An extra fee charged by some mutual funds to Cover promotion, distributions, marketing expenses, and sometimes commissions to brokers. A genuine No-load fund does not have 12b-1 fees, although some funds calling themselves "no-load" do have 12B-1 fees (as do some Load funds). 12b-1 fee information is disclosed in a fund's prospectus, is included in the stated expense ratio, and is usually less than 1%. |
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