Distribution in Kind

Glossary

Banking

Distribution in Kind

Distribution in kind is any form of distribution paid to beneficiaries not in cash but in the form of assets. A scrip dividend is a distribution in kind, since shareholders do not receive cash dividends but dividends in the form of additional shares. Payment-in-kind, or PIK bonds, do not pay coupons in cash but in the form of more bonds. Other forms of distribution in kind include payments in property or shares in property.

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