What is a Share Distribution?

A share distribution is the name commonly given to a share transaction where one party is distributing shares to two or more parties.

For example, if Emily owns 10,000 shares and wishes to distribute them evenly by transfer to each of her 5 children, this will commonly be referred to as a share distribution.

The result of the transaction would be:

• Emily has 0 shares
• Child 1 has 2,000 shares
• Child 2 has 2,000 shares
• Child 3 has 2,000 shares
• Child 4 has 2,000 shares
• Child 5 has 2,000 shares

Shares do not need to be distributed evenly in a share distribution. Any distribution of shares from one person to two or more persons may be referred to as a share distribution.