Capital Distribution
/ˈkæpɪtl dɪstrɪˈbjuːʃən/
Definitions
- (n.) A payment or transfer of assets made by a corporation to its shareholders, typically representing a return of some or all of the shareholders' original investment rather than income or profit.
The company declared a capital distribution to shareholders after the asset sale.
Forms
- capital distribution
- capital distributions
Related terms
See also
Commentary
Capital distribution often reduces the basis in the shareholder's stock and may have tax consequences distinct from ordinary dividends.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.