Distributions That Are Not Dividends Are a Return of Capital

question 69

True/False

Distributions that are not dividends are a return of capital and decrease the shareholder's basis.

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Definitions:

Efficient Market

A market hypothesis stating that stock prices fully reflect all available information, making it impossible to have consistently higher returns.

Citrus Harvest

The collection or gathering of citrus fruits, such as oranges and lemons, which can significantly impact agricultural economies and markets.

Florida Orange

Refers to oranges produced in Florida, significant for their contribution to the U.S. juice market and sensitivity to weather-related events impacting prices.

Negative Earnings Surprises

Occurs when a company reports lower earnings than analysts' estimates, leading to potential stock price decline.