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Glossary of Stock Market Terms

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Distributions

Payments from fund or corporate cash flow. May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares. Funds are required to distribute realized capital gains (if any) to shareholders at least once per year if they are not to be taxed by the fund itself. Some corporations offer Dividend Reinvestment Plans (DRP).

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