Distribution - Financial definition
Financial acronyms
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Concise definition of the term distribution
Corporate action whereby the issuer of a security delivers particular proceeds to the holder of the underlying security without affecting the underlying security.
Comprehensive definition of the term distribution
Distributions can have different forms. The most frequent ones are:
- Cash distributions (e.g. cash dividend, interest payment),
- Securities distributions (e.g. stock dividend, bonus issues),
- Distributions with options (e.g. optional dividend).