Return of capital

return of capital
the recovery of the original investment (or principal) in a project
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Return of Capital:
A distribution that is paid out of the shareholder's investment in the stock of the company.
Return On Equity ...

Return of Capital
For a long investment, when a portion of the quantity (for a bond) or net amount (for a stock) of an investment is returned to the buyer.

Return of capital distribution
A distribution in excess of a fund’s earnings. A return of capital distribution is generally a nontaxable distribution that reduces a shareholder’s cost basis in shares of a mutual fund.

Return of capital
A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Return on assets (ROA) ...

Return of Capital (ROC) A nontaxable distribution to shareholders that reduces their cost basis. In general, a return of capital results when a fund distributes more income and gains during a year than it has actually earned.

Return of Capital The distribution of cash resulting from depreciation tax savings, the sale of a capital asset or of securities in a portfolio, or any other transaction unrelated to retained earnings. .

return of capital rather than a distribution of retained earnings. Such a dividend may occur with a natural resource company having wasting assets (e.g., oil, coal) or when a company in a state of liquidation desires to distribute cash or other ...

Return Of Capital
A return from an investment that is not considered income. The return of capital is when some or all of the money an investor has in an investment is paid back to him or her, thus decreasing the value of the investment.

While return of capital amounts will not appear on your tax return, you should keep a record of them, since they must be used to reduce your basis in the stock when you sell.

A cash distribution may include capital gains and return of capital in addition to the dividend. Cash earningsA firm's cash revenues less cash expenses, which excludes the costs of depreciation.

EARNINGS & PROFITS (E&P) A term referring to the economic capacity of a corporation to make a distribution to shareholders that is not a return of capital.

Valuation: When distributions include return of capital the investor is receiving excess capital back from operations of the trust.

The downgrade tells investors they are less certain to receive the interest payments and return of capital they are due. The downgrade usually has the effect of reducing the security's price and raising the issuer's cost of capital.

return of capital A distribution that is not paid out of earnings and profits. It is a return of the investor's principal.

May include dividends from earnings, capital gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by investing in additional shares.

However, a distribution is not a taxable dividend if it is a return of capital to the shareholder. Most distributions are in money, but they may also be in stock or other property.

Payments from the fund that may include dividends from capital gains or earnings from sale of securities with the funds portfolio holdings and/or return of capital.

Repatriation. The transfer of investment earnings or the return of capital from a foreign country to the investor's home country.
Resale Price Maintenance. See vertical restraints.

Other jurisdictions provide corporations a means of designating, within limits, whether a distribution is a distribution of earnings taxable to the shareholder or a return of capital.

Referrig to an investment product, normally offered by a life insurance company, which includes some form of guaranteed return of capital.

Large share buy-backs are a way of carrying out a return of capital to shareholders. The alternatives are special dividend or a more complex .

The original value of an asset for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions.

When a fund pays out more income than it earned during the course of a year on a tax basis, the excess is called a "return of capital" and is reported on Form 1099-DIV as a nontaxable distribution.

There are six tax areas to understand, including -- flow through accounting, tax basis, return of capital, passive loss rules, recapture and zero basis.

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Net Investment Income
Private Investment Fund
Return of Capital ...

A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.
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When stock or mutual fund shares are involved, your adjusted basis is the cost of the shares plus any brokerage commissions or load fees minus any return of capital payouts.

An annuity bought with private savings (not pension savings). Part of the annuity is deemed to be interest paid on the capital and is taxed. The other part is considered to be a return of capital and so escapes tax.
Put option ...

The issuer promises to pay the holder at maturity the face amount of the certificate, which is the return of capital plus accrued interest. Investors may also be able to get a surrender value if the certificate is presented prior to maturity.

tax-structured products for non-registered investment accounts, which provide the investor with income treated in a certain way for tax purposes, such as capital gains, dividends, return of capital.

legal structures vary, Income Funds are designed such that the underlying business flows its free cash flow through to the investors in the form of monthly distributions. Distributions may be characterized as income, dividends or return of capital ...

59 milliards was received (estimated at 12 milliards), from the new tax on return of capital 909 millions (estimated 1,300 millions), from the newly extended tax on turnover 4.2 milliards (estimated 3.65 milliards). The coal-tax brought in 4.

See also: Expense, Banks, Values, Bills, Stock Dividend