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Accumulation units |
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Accumulation unitsUnits in a unit trust where the income from the trust's investments is reinvested in the trust rather than being paid out to its investors as dividends. This is either through enhancing the unit price or issuing additional units.Unitholders get the benefit of the dividends through the increased value of the fund's assets (and their share of those assets).Similar MatchesAccumulation areaAccumulation areaA price range within which a buyer accumulates shares of a stock. See: On-balance volume and distribution area. Accumulation and maintenance trustAccumulation and maintenance trustA tax-efficient trust, used to pass assets to your children while still retaining some control of those assets. Voluntary accumulation planVoluntary accumulation planArrangement allowing shareholders of a mutual fund to purchase shares over a period of time on a regular basis, and in so doing take advantage of dollar cost averaging. AccumulationAccumulationIn the context of corporate finance, refers to profits that are added to the capital base of the company rather than paid out as dividends. See: Accumulated profits tax. In the context of investments, refers to the purchase by an institutional broker of a large number of shares over a period of time in order to avoid pushing the price of that share up. In the context of mutual funds, refers to the regular investing of a fixed amount while reinvesting dividends and capital gains. Excess accumulationExcess accumulationThe amount of a required minimum distribution that an IRA holder fails to remove from an IRA in a timely manner. Excess accumulations are subject to a 50% IRS penalty tax. Further SuggestionsFactor accumulationaccumulation Accumulation |
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