What is Capital Gains Distribution?
The capital gains distribution is the process utilized to remit the proper amount of net gains on capital investments to each of the investment company shareholders that are eligible for a return on their investment. While the exact process of accomplishing a capital gains distribution may vary from one situation to another, there are a few factors that tend to apply in just about every case. Among those basic factors are the process that is used to determine the total amount of capital gains that are generated within a given calendar period. A second key factor involves settling on the process that will be employed to decide how much of the cumulative capital gain will be distributed to each qualified shareholder. One of the most important things to understand is what constitutes a capital gain. Essentially, a capital gain is the increase in the value of a capital asset that has taken place since the last pay of a capital gains distribution to the shareholders. Each of the assets that
” The capital gains distribution is the process utilized to remit the proper amount of net gains on capital investments to each of the investment company shareholders that are eligible for a return on their investment. While the exact process of accomplishing a capital gains distribution may vary from one situation to another, there are a few factors that tend to apply in just about every case. Among those basic factors are the process that is used to determine the total amount of capital gains that are generated within a given calendar period. A second key factor involves settling on the process that will be employed to decide how much of the cumulative capital gain will be distributed to each qualified shareholder. .
