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A question about how "distributions" work.

Perhaps this is dumb, but here goes...Let's say a mutual fund invest in only one stock, XYZ.Let's say you and I invest $100 and we're the only investors. XYZ sells for $1.So the fund buys 200...

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Re: A question about how "distributions" work.

The taxation of mutual funds is applied in a pragmatic and not a theoretically fair manner. A mutual fund makes an annual distribution at the end of each year of all its realized income, and all the...

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Re: A question about how "distributions" work.

Ok, that clears it up.This is something I had wondered about for a while, so I appreciate the explanation.Dave Guy

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