Page History

...

• Return of capital is not the same as capital gains distribution.
• Return of capital generally differs from a sale in that you're not the one who initiates the return of capital. For example, a mortgage-backed security (such as a Ginnie Mae) returns capital when the underlying mortgages pay off the principal, which is passed on to you.
• Recording a return of capital lowers your cost basis.
• To ensure that the market value also declines with a return of capital, you must update the price of the security. This new price equals the current price times the factor (which is supplied in your statement).