DISTRIBUTIONS Definition

DISTRIBUTIONS are payments from fund or corporate cash flow. May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares. Funds are required to distribute capital gains (if any) to shareholders at least once per year. Some corporations offer Dividend Reinvestment Plans (D.R.P.).

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OBLIGATION, in business, is a legal duty to pay or do something.

NEGATIVE DOLLAR is a dollar that is owed to another entity.

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