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Distribution is the act of dividing assets to one of several beneficiaries, as named in a trust or a will by a court. Also refers to (i) the payment of capital gains from an investment company to shareholders upon the sale of securities or payment of profits from a corporation to its shareholders, such as a dividend and (ii) when in an initial public offering, the underwriter sells the securities issued by a corporation.

[Last updated in February of 2022 by the Wex Definitions Team]