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Accumulation
The financial definition for Accumulation:
In 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.
Similar MatchesAccumulation areaAccumulation area A price range within which a buyer accumulates shares of a stock. See: On-balance volume and distribution area.
Excess accumulationExcess accumulation The 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.
Voluntary accumulation planVoluntary accumulation plan Arrangement 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.
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