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What are disbursements?

Updated: 11/16/2022
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15y ago

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Disbursements are usually associated with some type of investment - most commonly stock held in a public company. When you invest money in a company, they use that money as capital, to further grow their business. If their business does indeed grow, and become profitable, they will reward their investors in the form if disbursements - a percentage of their profit earned applied to shareholder's investments. A good percentage is five percent. In effect - You invest $100.00 in a company, and hold one share of common stock; They make a dividend payment of 5% per share, and you would get a disbursement of five Dollars. This return can be paid in the form of cash, or added to your share holdings (meaning you could let the money "ride" and then be invested at $105.00)

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