Archive for the '# Glossary' Category

48-hour rule

48-hour rule

48-hour rule

The requirement that all pool information, as specified under the PSA Uniform Practices, in a TBA transaction be communicated by the seller to the buyer before 3 p.m. EST on the business day 48-hours prior to the agreed upon trade date.



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12b-1 funds

12b-1 funds

12b-1 funds

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-I (passed in 1980).



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12B-1 fees

12B-1 fees

12B-1 fees

The percent of a mutual fund’s assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund’s prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true ” no load” fund has neither a sales charge nor 12b-1 fee.



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