What does capital gains distribution mean?

capital gains distribution meaning in Law Dictionary

taxable circulation off taxable gains understood by the issuer. Its typically paid to protection holders of trusts, partnerships, and funds. Like all distributions, it could be paid-in securities or cash. The total amount, payable day, and record time are founded because of the issuer.

capital gains distribution meaning in Business Dictionary

Per share distribution of money gains by a mutual fund (unit trust). Investors (unit holders) associated with fund are taxed on this revenue instead of the foundation of the participation in investment, but for the length of time the securities (on the purchase of which capital gain was recognized) had been held just before their purchase. Investors whom join a fund right before a capital gains distribution had been made (usually a couple of times annually) are liable for income tax on a profit they never made.