Stock distributions are always tax-free to the recipient shareholder.

Question

Quizplus · Accepted Answer

Stock distributions can be tax-free in certain circumstances, such as in the case of a stock dividend. However, other types of stock distributions, such as a distribution of appreciated stock in a taxable account, can be subject to capital gains taxes. It is important for the recipient shareholder to understand the tax implications of any stock distribution they receive.

Stock Distributions Are Always Tax-Free to the Recipient Shareholder