What are Distributions?

There are a number of types of distributions:

1. A company's payment of cash, stock or physical products to its shareholders.
2. The removal of assets from a retirement account.  The assets are then paid to the retirement account owner or beneficiary.  There are many rules associated with retirement plan distributions and it is a good idea to consult a professional.
3. Distributions of income and capital gains that mutual funds make to their investors periodically during a calendar year.