Final answer:
A fee charged by a mutual fund company when selling a mutual fund is called a back-end load. It is designed to discourage frequent buying and selling of mutual funds and compensate the mutual fund company for processing the sale.
Step-by-step explanation:
A fee charged by a mutual fund company when selling a mutual fund is called a back-end load.
This fee is also known as a redemption fee, and it is typically a percentage of the selling price calculated when the investor sells their mutual fund shares.
The purpose of this fee is to discourage investors from quickly buying and selling mutual funds, and it is designed to compensate the mutual fund company for any costs associated with processing the sale.