cap.red vs dividend

[Rhament]

Please explain what the abbreviation cap.red refers to in a credit, and if it is an extrordinary captal return to shareholders, does it attract tax, and does it affect a shareholding. If it is a capital reduction (return) will it affect dividends, and if so why is it done?

[SimonPB]

cap reduction - tax effect is that your cost price is reduced by the amount, so when selling profit is higher ..