FTB-C000126 / Financial concept

Return of Capital

A return of capital is a distribution classified as repayment of invested capital rather than ordinary earnings under a stated context.

Also known ascapital repayment

Definitions

In plain terms

It can affect tax basis, price adjustment, and return views differently, so one label cannot safely determine every treatment.

Technical

The record needs amount, currency, security, dates, legal and tax classification source, market and index treatment, basis implications, and revisions.

Scope

This glossary definition is educational and not tax advice; classification is jurisdiction- and holder-specific.

Examples

  • A governed calculation records return of capital with its exact basis, effective time, source, and units.

Common misconceptions

  • Return of Capital does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Where this concept is used

Evidence and governance

  1. Corporate Actions and Events Guide FTSE Russell, London Stock Exchange Group · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: Rules are specific to applicable FTSE Russell indices and can contain market, eligibility, tax, and timing exceptions.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
fintech-builder-owner-approved
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published