Evolutionary perspective The approach to psychology that stresses the importance of behavioral and mental adaptiveness, based on the assumption that mental capabilities evolved over millions of years to serve particular adaptive purposes.
How Stock Mutual Funds Pay Dividends. Stock mutual funds hold a portfolio of many stocks, in some cases hundreds or even thousands of different companies. These companies are distributing dividends throughout the year. However, it is generally impractical for mutual fund companies to distribute dividends to shareholders every time they receive them.
Reinvested dividends and capital gains distributions are also investments. Dividends become your money as soon as they are earned, so reinvestment just funnels more of your cash into the fund. Dividend reinvestment results in a cost basis that is higher than the actual dollar amount you have sent off to buy shares.ou have scored a nice profit on you mutual fund and now comes the hassle of figuring out the taxes. You pay taxes based on the selling price of your shares minus your cost basis, or what you paid for them -- including the dollar value of all dividends you reinvested.