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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 realized capital gains (if any) to shareholders at least once per year if they are not to be taxed by the fund itself. Some corporations offer Dividend Reinvestment Plans (DRP).


1. A situation in which a security's or market's trading volume is higher on a given trading day than the previous trading day without any price appreciation. This is taken as an indicator that the security or market has hit its highest price and will soon decline.

2. The payment of the assets in an IRA or other retirement account to the account holder or his/her beneficiary. Distributions usually begin after retirement, but may begin before with the payment of applicable penalties.

3. A dividend paid to a company's or mutual fund's shareholders.

4. An institution's consistent sale of a single security over a long period of time as opposed to all at once. This is done to avoid causing fluctuations in price. See also: Accumulation.
References in periodicals archive ?
of the Cumulative Distributions for the Fiscal Year-to-Date
The next three sections contain the abstracts for discrete univariate, continuous univariate, and multivariate probability distributions.
Practice note: As was stated, corporations with AE&P must report certain distributions on Form 5452.
Under section 409A, distributions of amounts deferred under a nonqualified deferred compensation plan may occur only for the following reasons:
Generally, the best time to take distributions from an IRA is late in the year to maximize the deferral.
A taxpayer who begins receiving IRA distributions before age 59 1/2 must wait five full years before modifying the amount of the periodic distribution.
The actual sources of the Fund's distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Fund's fiscal year based on tax regulations.
402(f):A recipient of an eligible rollover distribution must be apprised of the fact that, if the distribution is rolled over to an eligible retirement plan, distributions from that plan may be subject to restrictions and tax consequences that differ from those applicable to distributions from the plan making the eligible rollover distribution; see Sec.
i]) based on unreasonable state-of-knowledge distributions may be unreliable.
points out: "For distributions for the 2001 calendar year, IRA owners are permitted, but not required, to follow these proposed regulations in operation, notwithstanding the terms of the IRA documents.
22) The intragroup distribution provision applies to distributions after April 16, 1997, unless certain transition rules apply.
A surviving spouse who inherits an IRA can elect to treat it as his or her own (in which case the minimum distributions would be determined based on the surviving spouse's age) or may roll it over, taxfree, into his or her own IRA.

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