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Distribution

In finance, distribution can refer to a number of different things, most of which have to do with paying assets from a fund, account, or individual security to an investor or beneficiary. Distributions from retirement accounts are among the most frequent and become necessary when the account holder reaches a particular age. A firm or mutual fund paying stock, cash, or other rewards to its shareholders is referred to as making a distribution. Finally, distribution is one of the four market phases (accumulation, ascending, distribution, descending) involving smart money activity. When a specific equity or index has reached smart money price target and they are satisfied with it, they are now are looking to sell. The sellout period that is about to begin is called distribution phase. This phase develops towards the end of an uptrend that has been lasting for while.


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