15 What else is there to know about distributions?
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This article is from the FAQ, by with numerous contributions by others.
15 What else is there to know about distributions?
A distribution lowers the net asset value of the fund by the
amount of the distribution. The shareholder does not actually
lose money because of the distribution, since s/he gets cash or
additional shares to compensate for the lower net asset value.
Distributions have important tax consequences as detailed later.
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