Liquidating dividend

Liquidating dividend,

Definition of Liquidating dividend:

  1. A liquidating dividend is also called liquidating distribution.

  2. If a company is claiming bankruptcy or will cease business operations, the company will issue this type of payment to shareholders. Payments are based on how many shares a shareholder has in the company.

  3. A liquidating dividend is a type of payment that a corporation makes to its shareholders during a partial or full liquidation. For the most part, this form of distribution is made from the company's capital base. As a return of capital, this distribution is typically not taxable for shareholders. A liquidating dividend is distinguished from regular dividends that are issued from the company's operating profits or retained earnings.

Meaning of Liquidating dividend & Liquidating dividend Definition

Liquidating Dividend,

Definition of Liquidating Dividend:

Liquidation dividend is a type of payment that a company has made to its shareholders during partial or full liquidation. This form of distribution is primarily made up of the company's authorized capital. As a return on investment, these distributions are not usually taxed on shareholders. Ending profits are different from ordinary profits, which are paid from the company's operating income or maintained income.

Literal Meanings of Liquidating Dividend

Liquidating:

Meanings of Liquidating:
  1. Clear the (company) business by identifying liabilities and allocating assets.

  2. Kill (someone), usually by force.

Sentences of Liquidating
  1. In the event of liquidation of the company, substantial funds will be released to settle the debts

Synonyms of Liquidating

execute, cut down, kill, kill off, mow down, disband, wind up, liquidate, cut to pieces, massacre, exterminate, send to the gas chambers, dissolve, annihilate, terminate, wipe out, eliminate, break up, murder, put to the sword

Dividend:

Meanings of Dividend:
  1. A company pays its shareholders regularly (usually quarterly) out of profits (or reserves).

  2. A large number was divided by the second number.

Sentences of Dividend
  1. Tax exemption on pension fund profits has been abolished.

  2. Dividend must have more than one symbol of the calendar.

Synonyms of Dividend

reward, proceeds, percentage, yield, winnings, dividend, profit, takings, interest, income, earnings, advantage, benefit, receipts, emolument, return