Distribution In Kind

Shouldn't there be a "distribution in cruel"?

There should be, but there isn't. Instead, "kind" means "barter" or "in original form." The term often refers to a venture capital set of investments wherein an investor put in $14,000 in whatever.com, which, after seven years, went public, and now trades for $34 a share. The venture capitalist general partner then distributes those shares in kind, rather than selling them first and then distibuting cash to the investors.

Why would the VC do this? Because many venture capital investors donate more or less all of their winnings to charity, and if the securities are sold and turned into cash, they are taxed first, rather than later, i.e. much more money goes to the government than to the charity.