Back Load

What Does Back Load Mean?

A back load is a financial agreement wherein one party defers payment until a certain period or a later transaction takes place, such as paying another party a portion owed to them after the sale of shares or stocks.

Insuranceopedia Explains Back Load

A back load financial agreement comes with the purchase of a financial product such as stocks or shares. This may be in the form of sales charge or even a portion of the shares bought. Whatever the case may be, paying for it comes later, depending on the terms of the agreement. The sales charge may be paid after the sale of the shares. The portion of the stocks, or its value, may also be given after the whole stocks are bought.