Distribution

The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most common and are required after the account-holder reaches a certain age. A distribution also refers to a company's or a mutual fund's payment of stock, cash, and other payouts to its shareholders. Distributions come from several different financial products. However, whatever the source, the distribution payment usually goes directly to the beneficiary, either electronically or by check. A distribution generally refers to the disbursement of assets from a fund, account, or individual security to an investor.