Re: Distributions - ST MT & LT Capital Gains

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Posted by Mark on May 11, 2006 at 10:26:21:

In Reply to: Distributions - ST MT & LT Capital Gains posted by Gary Wilson on May 10, 2006 at 21:25:56:

: Mark, I have been using FM for 10 years plus - just realised I have never worked out the significance of Distribution categories ST, MT & LT Capital Gain. ;-( How do you have a cash capital gain distribution that is not a sale? I am sure its something blindingly obvious but this "dunmmy" Australian cannot work it out. Mark can you explain how this is used?

: Thanks ;-)

Hi Gary,

These distribution types are normally only used with mutual funds, not stocks. When a mutual fund sells some shares and incurs a capital gain, it can distribute this back to the fund shareholders in terms of a capital gain distribution.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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