Business, Legal & Accounting Glossary

Definition: Distribution


What is the dictionary definition of Distribution?

Dictionary Definition

  1. The payment of a dividend or capital gain.
  2. A company’s allocation of income and expenses among its various accounts.
  3. Handing out assets to beneficiaries of an estate.
  4. The sale of a large amount of stock by a single entity over a period of time rather than all at once, to avoid adversely affecting its market price. opposite of accumulation.

Full Definition of Distribution

Distribution is a broader concept to deal with. In business and economics distribution is used in a singular perspective. In business, distribution is referred to as a process that makes available to the consumer a product or service for use. Distribution is one of the major aspects of the marketing process. A good after being manufactured needs to be distributed to get the actual value. Thus, distribution is one of the major elements of the four major elements of marketing mix like product, pricing, and promotion.

The process of distribution is carried by several channels. Direct selling is the grassroots level of the channel of distribution. This takes place when selling is done by mail order, internet facility or through telephones. Distribution can take place through agents also. Producers often engage agents who sell products on their behalf. Distributors also known as wholesaler do the job of selling products to the retailers. Retailers who are also known as dealer and reseller are responsible for selling goods to the customers. Advertisement policy is also regarded as a channel for distribution, which is used mainly for consumption goods.

Distribution in economics is a statistical term used to denote the frequency of various levels of data. Distribution can be categorized into various forms depending on the trend of data. Major types of frequency distributions include normal distribution, binomial distribution, and Poisson distribution.

Frequency distribution that takes the shape of a bell is termed as normal distribution in economics. Normal distribution comprises of two major properties like there is a least propensity of a normal distribution to produce unusual values. The other is property of symmetric distribution.

Apart from normal distribution, Poisson distribution is widely used in probability theory and statistics. Poisson distribution is known as a discrete probability distribution, which represents the probability of a certain number of events for a predetermined period of time. Here lie two conditions one is that the average rate of occurrence of the events is known and the other is that events should not depend on time.

Related Phrases

excess distribution
required minimum distribution
payable date
income distribution

Distribution FAQ's

What Is Distribution In Stocks?

A distribution is money paid to shareholders by a mutual fund from dividends or interest earned or capital gains realised on the sale of securities in its portfolio. Unless you own the fund through a tax-deferred or tax-free account, you must pay federal income tax on most distributions, with the exception of municipal bond fund interest income. Whether you reinvest the money to buy more shares in the fund or not, the tax is due. Short-term gains and interest income will be taxed at your regular rate. The tax on qualifying dividends and long-term capital gains is computed using your long-term capital gains rate. Your year-end statement will show which income falls into which category. The term distribution is also used to describe specific actions taken by a corporation. For example, if a corporation spins off a subsidiary as a standalone company, current stockholders will receive shares in that subsidiary. This is known as a distribution. Corporate dividends are also known as distributions.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Distribution. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 27, 2023 https://payrollheaven.com/define/distribution/.
Chicago Manual of Style (CMS):
Distribution. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/distribution/ (accessed: May 27, 2023).
American Psychological Association (APA):
Distribution. PayrollHeaven.com. Retrieved May 27, 2023
, from PayrollHeaven.com website: https://payrollheaven.com/define/distribution/

Definition Sources

Definitions for Distribution are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th April, 2022 | 0 Views.