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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Capital Gains Distribution

Definition:

The fund manager looking out for your mutual fund may sell or buy some of the stocks and bonds in your mutual fund. If he or she sells and makes a profit, the profit might be distributed to the fund holder (you). If this happens, you will have to pay taxes on the capital gains distribution.