There are several different types of Distributions in the financial world. Most of them pertain to the payment of assets from a fund, account, or individual security to an investor or beneficiary. distributions can be made on a regular basis, such as monthly or quarterly, or they can be made as needed, such as when an account is closed or when a security is sold.The most common type of distribution is a dividend. A dividend is a payment made by a company to its shareholders. Most dividends are paid in cash, but some companies also offer stock dividends, which give shareholders additional shares of the company.Another type of distribution is a bond interest payment. When you buy a bond, you are lending money to a company or government. In return, the borrower agrees to pay you interest on the loan, and to repay the loan in full when the bond matures. Interest payments are usually made semi-annually, but they can also be monthly or even annual.Finally, distributions can also refer to the distributions made by mutual funds and other investment vehicles. These distributions are typically made to shareholders on a quarterly basis. They can be in the form of cash dividends, capital gains, or a combination of both.
