What Is a Distribution-in-Kind? A distribution-in-kind, also referred to as a distribution-in-specie, is a payment made in the form of securities or other property rather than in cash. A distribution-in-kind may be made in several different situations, including the payment of a stock dividend or inheritance, or taking securities out of a tax-deferred account. It
What Is Distribution Management? Distribution management refers to the process of overseeing the movement of goods from supplier or manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain, and logistics. Distribution management is an important part of the business cycle for
What Is a Distribution Network? In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network.
What Is Distribution Stock? Distribution stock refers to large blocks of a security that are carefully sold into the market gradually in smaller blocks so as to inundate the market with sell orders for the security and drive down its price. Traders also refer to the dynamic of securities being sold this way as simply
What Is a Distribution Waterfall? A distribution waterfall is a way to allocate investment returns or capital gains among participants of a group or pooled investment. Commonly associated with private equity funds, the distribution waterfall defines the pecking order in which distributions are allocated to limited and general partners. Usually, the general partners receive a
What is a Distribution Yield? A distribution yield is the measurement of cash flow paid by an exchange-traded fund (ETF), real estate investment trust, or another type of income-paying vehicle. Rather than calculating the yield based on an aggregate of distributions, the most recent distribution is annualized and divided by the net asset value (NAV)
What Is Diversification? Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk. The rationale behind this technique is that a portfolio constructed of
What Is a Discount Note? A discount note is a short-term debt obligation issued at a discount to par. Discount notes are similar to zero-coupon bonds and Treasury bills (T-Bills) and are typically issued by government-sponsored agencies or highly-rated corporate borrowers. Discount notes have maturity dates of up to one year in length. Discount notes
What Is a Discount Window? The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs. Banks that are unable to borrow from other banks in the fed funds market may borrow directly from the central bank’s discount window paying the federal discount rate. Current discount rates are
What Is the Discount Yield? The discount yield is a way of calculating a bond’s return when it is sold at a discount to its face value, expressed as a percentage. Discount yield is commonly used to calculate the yield on municipal notes, commercial paper and treasury bills sold at a discount. Key Takeaways Discount
