Liquidating divident

Rated 3.97/5 based on 626 customer reviews

A liquidating cash dividend is a distribution to that returns some of the original investment to the owners.In other words, a liquidating cash distribution gives some of the investors investment back to them.Also known as liquidating distributions, a liquidating dividend is a return of the company's shareholders' capital investment.This concept is different than regular dividends, which are paid from the company's profits or retained earnings.Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section on the company's balance sheet – the same as its issued share capital.

See also final dividend, General Utilities Doctrine.

A type of payment made by a corporation to its shareholders during its partial or full liquidation.

For the most part, such a distribution is made from the company's capital base, and as a return of capital, is typically not taxable for shareholders.

.boxy-content a.term-action, button.term-action a.term-action:hover, button.term-action:hover .term-action-bg .term-uex .term-cite .term-fc .term-edit .boxy-dflt-hder .definition .definition a .definition h2 .example, .highlight-term a.round-btn, a.round-btn.selected:hover a.round-btn:hover, a.round-btn.selected .social-icon a.round-btn .social-icon a.round-btn:hover a.round-btn .fa-facebook a.round-btn .fa-twitter a.round-btn .fa-google-plus .rotate a a.up:hover, selected, a.down:hover, selected, .vote-status .adjacent-term .adjacent-term:hover .adjacent-term .past-tod .past-tod:hover .tod-term .tod-date .tip-content .tooltip-inner .term-tool-action-block .term-link-embed-content .term-fc-options .term-fc-options li .term-fc-options li a .checkmark .quiz-option .quiz-option-bullet .finger-button.quiz-option:hover .definition-number .wd-75 .wd-20 .left-block-terms .left-block-terms .left-block-terms li .no-padding .no-padding-left .no-padding-right .boxy-spacing @media (min-width: 768px) @media (max-width: 768px) @media print { a:link:after, a:visited:after nav, .term-action, #wfi-ad-slot-leaderboard, .wfi-slot, #related-articles, .pop-quiz, #right-block, .

A dividend paid to shareholders out of a company's capital or assets, rather than its earned income.

Leave a Reply