Investor Glossary-capital gains distributionInvestor Glossary-capital gains distributionInvestor Glossary-capital gains distributionInvestor Glossary-capital gains distributionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capital Gains Distribution

The HTML to link to this page
 

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...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use