This term has multiple meanings.

In corporate law: see dividend and liquidation distribution.

Where used in relation to trading in securities: as defined in Ontario Securities Act (OSA), R.S.O. 1990, c. S.5, section 1(1).

Under section 52 of the OSA, to but not including the 15th day of March 1981, for the purposes of sections 54 to 64 of the OSA, distribution means only a distribution that is a distribution to the public.

Distributions in Ontario require a prospectus or a prospectus exemption under the OSA such as in the context of a private placement. There are similar definitions and requirements under other Applicable Securities Laws in Canada.

For more information, see Practice Notes, Securities Laws in Canada: Overview and Prospectus Offerings in Canada: Overview and Private Placement Offerings in Canada: Overview.