Reserve Funds has begun making distributions to shareholders of its Primary Fund at an initial rate of 50 cents on the dollar, and its president said the company plans to pay the rest soon.

The company is distributing $26 billion of a total $51 billion to shareholders of its Primary Fund, more than six weeks after the company first announced that the money market mutual fund "broke the buck" on Sept. 16 by falling below $1 a share.

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