Dividends
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Description
Payments by a corporation to shareholders, made in either cash or stock.
It is the distribution of assets (usually cash) by a corporation to its shareholders. Normally viewed as a distribution of profits, dividends cannot exceed the amount of retained earnings. Must be formally declared by the board of directors and distributed on a per-share basis. Note: Shareholders cannot simply withdraw assets from a corporation at will.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Dividends
Learning Material
Covered in Topic(s)
| Stock Valuation |
| Stockholders Equity: Paid in Capital |
| The Accounting Cycle: Capturing Economic Events |