return of capital

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Return of capital

A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

return of capital

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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If tangible proo f of return of investment is not actually demonstrated after purchase, the vendor could well find that initial promise coming under the scrutiny of a legal court.