   
|
|
|
|
Capital Gains Distribution
|
A capital gains distribution is a distribution of income from a mutual fund to its shareholders. It occurs when the fund sells shares of its holdings for a profit; after this, it then pays the capital gains distribution to its shareholders. Because the capital gains distribution comes from the assets of the mutual fund, it lowers the fund's net asset value. A capital gains distribution usually takes place near the end of the year, in December. The capital gains distribution is taxable to the shareholder unless the account is tax-deferred, for example, in a retirement account. The taxability of the capital gains distribution may come as a shock to new investors who invest in the fund right before the distribution. Mutual fund companies will report a capital gains distribution on form 1099-DIV.
Rate this capital gains distribution definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
