A category of mutual fund shares which carries a small front-end sales charge and small redemption fees, but a larger annual distribution fee (i.e., the 12b-1 fee). Class “C” shares, like class “B” shares, don’t impose a front-end sales charge at the time of purchase. However, a tiny percentage may be imposed if the shares are sold within a short period of time after purchase. Contrary to class “B” shares, class “C” shares don’t end up converted to class “A” shares. Conventionally, for each class of mutual fund shares, there is one portfolio of securities and one investment advisor. Each class is entitled to the same claim on the portfolio. However, classes differ in how the mutual fund collect fees and expenses from investors. For example, class “C” shares may charge investors a distribution fee of 1% , a 1% load fee, and a 1% redemption fee.