Return Of Capital
What is it? Money paid to you as total or partial repayment of the money you invested. Return of capital differs from a sale in that you are not the one who initiates the return of capital. For example, a mortgage-backed security, such as a Ginnie Mae, returns capital when the underlying mortgages pay off principal, which is passed on to you. A unit trust returns capital as it sells the bonds within the trust.Added By: Sophia
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