return of capital

(redirected from Return of investment)
Also found in: Acronyms, Wikipedia.

Return of capital

A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.

Capital Dividend

A dividend that comes from what an investor has paid into a publicly-traded company, rather than from its earnings. That is, a capital dividend occurs when a company gives back what the investor has invested. It may occur when a company must pay a required dividend but earnings make it unable to do so from its profits. Capital dividends may be a sign that a company is not financially healthy. In any case, they reduce the amount of capital that the company has to invest in its operations. They are also called return of capital.

return of capital