Earnings paid to shareholders that are not related to the sale of securities in the fund's portfolio are called

Question

Quizplus · Accepted Answer

Income dividends are payments made by the mutual fund to its shareholders from the fund's net investment income and other income sources, such as dividends and interest earned on the securities in the fund's portfolio. These earnings do not come from the sale of securities in the fund's portfolio, which is different from capital gain distributions, which are payments made from the net gains of the fund's securities sales.

Earnings Paid to Shareholders That Are Not Related to the Sale