Sales Charge
(Mutual fund)
Sales charge - determine the sales charge of a mutual fund
is easy, just subtract the bid price from the offer price.
For example, with a bid of 18.00 and an offer of 19.44 the sales charge would be 19.44 - 18.00 = 1.56.
Then take the sales charge divided by the offering price to put it in percentage terms (in this case = 8%).
The NASD allows a maximum of 8 ½ %.
