Dictionary
Thesaurus
Encyclopedia
Translator
Web

penalty plan

 - 1 dictionary result
Financial Dictionary

penalty plan

A mutual fund accumulation plan in which sales fees for the entire obligation are deducted from shares purchased in the first few years that the plan is in effect. In the event that the investors redeem the shares after a short time, only a small portion of the purchase price will be refunded. Sales charges and penalty plans are regulated by the Investment Company Amendments Act of 1970.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see penalty plan on Thesaurus | Reference
FacebookTwitterFollow us: