Load in Computing
Definition
In computing, the term “load” refers to the process of moving a program or data from secondary storage (such as a disk) to the computer’s primary memory (RAM). This process is essential for programs to be executed by the CPU, as they need to be located in the faster-access primary memory to function correctly.
Examples
- Loading an Operating System: When you turn on your computer, the operating system is loaded from the hard drive into the main memory.
- Running an Application: When you open a software application like Microsoft Word, it is loaded from the disk into the computer’s memory.
Load in Finance
Definition
In finance, a “load” refers to a sales charge or commission that investors pay when buying or selling shares of a mutual fund. Loads typically come in two main types: front-end loads and back-end loads.
Types of Loads
- Front-End Load: This is a commission or sales charge applied at the time of the initial purchase of fund shares. It usually amounts to about 8½% of the total investment.
- Back-End Load: Also known as a deferred sales charge, this is a fee paid when investors sell their fund shares. The fee often decreases over time the longer an investor holds onto the shares.
No-Load Fund
A no-load fund does not charge any sales fee when shares are bought or sold.
Examples
- Front-End Load: An investor pays a 5% front-end load on a $10,000 investment in a mutual fund, resulting in a $500 fee.
- Back-End Load: An investor sells shares in a mutual fund and pays a 2% back-end load on the proceeds.
Frequently Asked Questions
What is the difference between front-end load and back-end load?
A front-end load is a sales charge paid when purchasing shares of a mutual fund, while a back-end load is paid when selling shares of the fund.
Can I avoid paying loads on mutual funds?
Yes, you can invest in no-load funds, which do not charge sales fees when you buy or sell shares.
Why do mutual funds charge loads?
Loads are typically used to pay for the financial advice and services provided by the brokerage or financial advisor.
Related Terms
No-Load Fund
A mutual fund that does not charge any type of sales load.
Memory Management
The process of controlling and coordinating computer memory, including assigning blocks to various running programs to optimize system performance.
Mutual Fund
A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, wherein investors can buy shares.
Online References
Suggested Books for Further Studies
- “Understanding Computers: Today and Tomorrow” by Deborah Morley and Charles S. Parker - Offers a comprehensive overview of how computer memory and loading processes work.
- “Mutual Funds For Dummies” by Eric Tyson - Provides detailed explanations of mutual fund types, fees, and investment strategies.
Fundamentals of Load: Computers and Finance Basics Quiz
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