Series 7: 6.2.3 Distributions

Taken from our Series 7 Top-off Online Guide

6.2.3 Distributions

Closed-end funds pay distributions. A closed-end fund’s market price is particularly sensitive to its ability to provide steady distributions to its shareholders. A shareholder may choose to automatically invest income and capital gains distributions issued by the fund in new shares. By reinvesting distributions rather than taking them in cash, the shareholder is able to compound the return as invested capital. Or

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