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.
DEFINITION of 'Exempt-Interest Dividend'. A distribution from a mutual fund that is not subject to income tax. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. While exempt-interest dividends are not subject to federal income tax, they may still be subject to state income tax or the Alternative Minimum Tax (AMT). The dividend income must be reported on the income tax return, and it is reported by mutual funds on Form 1099-INT.