capital gains distribution
Definition
Per share distribution of capital gains by a mutual fund (unit trust). Shareholders (unit holders) of the fund are taxed on this profit not on the basis of their participation in the fund, but for how long the securities (on the sale of which capital gain was realized) were held prior to their sale. Investors who join a fund just before a capital gains distribution was made (usually once or twice a year) are usually liable for tax on a profit they never made.
capital gains distribution is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
capital gains distribution appears in the definition of the following term: diamonds
This content can be found on the following page:
http://www.businessdictionary.com/definition/capital-gains-distribution.html
email to a friend print this definition cite this definition