automatic withdrawal

automatic withdrawal definition - business

automatic withdrawal

A feature of some mutual funds that allows a shareholder to specify that the fund remit fixed payments at periodic intervals. The payments are comprised of dividends, interest, and capital gains received by the fund, and, if these are insufficient, liquidation of some shares owned by the shareholder.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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