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Return of capital

In the realm of finance, there exists a unique term known as "non-dividend distribution". This refers to a payout that is not derived from a corporation's earnings and profits, but rather serves as a means of returning the initial investment made by a shareholder. Essentially, it is a reimbursement of sorts, acknowledging the shareholder's contribution to the company's stock. This concept is a crucial aspect of understanding the complexities of corporate finance.
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