Accumulations: A Comprehensive Guide to Legal Definitions and Contexts
Definition & meaning
Accumulations refer to the process of increasing assets or profits through continuous addition. This can occur in various contexts, including:
- The accrual of profits from selling principal assets.
- Increases in interest or income when the principal asset is restricted by a will or deed.
- Institutional investing, where large investors gradually buy shares of a public company.
- Corporate finance, where profits are retained and added to a company's capital base instead of being distributed as dividends.
- Mutual funds, which involve regular investment of a fixed dollar amount and the reinvestment of dividends and capital gains.