distribution

Distribution

1. An occurrence where trading volume is, without any price appreciation, higher than that of the previous day.

2. A removal of assets from a retirement account that is paid to the retirement account owner or beneficiary.

3. A company's payment of cash, stock, or physical products to their shareholders.

Notes:

1. A market that is in distribution has already hit its apex and is expected to decline.

2. The retirement account owner (or beneficiary) may be required to pay income tax on distributions received during the year. Early-distribution penalties may also apply if the distribution occurs while the retirement account owner is under the age of 59 ½. While distributions from IRAs can occur at any time, certain requirements must be met before distributions can occur from qualified plans, 457 plans, and 403(b) accounts. Participants must check with their employer regarding the rules of the plan.

See also: Bear, Bull, Chartist, Consolidation, Dividend, IRA, Rollover, Technical Analysis, Volume, XD, XDIS

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Distribution

Selling a large lot of a security in such a way that the security price is not heavily influenced.

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distribution

1. See public offering.

2. An investment company payment to its shareholders of capital gains realized from the sale of securities. Investment company shareholders, not the investment company, pay taxes on a distribution.