B Shares

B Shares - B shares refers to one of the classifications referring to stocks or mutual funds. The structure of these B shares is known as a back end load structure, which means the sales charges and commission fees will have to be paid only when the investor sells the class B shares. The idea behind a back end load is to discourage investors from selling their shares. Class B funds normally have higher management expense ratios than shares which are charged front end and in the same family. Fund companies attempt to increase their profits in back end loading because as time goes by, the rear end value decreases in value until there is no load at all. However, not all fund companies use this kind of structure, though it is a prominent method of distinction.