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distribution | Wex | US Law | LII / Legal Information Institute
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distribution
Distribution is the act of dividing assets to one of several beneficiaries, as named in a trust or a will by a court. Distribution also refers to the payment of capital gains from an investment company to shareholders upon the sale of securities or payment of profits from a corporation to its shareholders, such as a dividend. Distribution is also when the underwriter sells the securities issued by a corporation in an initial public offering.
[Last reviewed in September of 2025 by the Wex Definitions Team]
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