Realized net capital gains that a mutual fund pays out to its investors are called ____ distributions.

Question

Quizplus · Accepted Answer

Realized net capital gains that a mutual fund pays out to its investors are called capital gains distributions. This is the only option that correctly describes this type of distribution. Ordinary income dividends refer to dividends paid out from a company's earnings, interest refers to the income earned on loans or bonds, and rent refers to income earned from property.

Realized Net Capital Gains That a Mutual Fund Pays Out