A Liquidating Dividend Is

question 192

Multiple Choice

A liquidating dividend is:

• A)Only declared when a corporation closes down.
• B)A return of a portion of the original investment back to the stockholders.
• C)Not allowed under federal law.
• D)Only paid in assets other than cash.
• E)Only paid in shares of stock.

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Definitions:

Years

Units of time equal to 365 or 366 days, measuring the time elapsed or duration.

Unamortized Premium

The portion of the bond premium that has not yet been amortized or gradually written off against earnings over the life of the bond.

Open Market

A market structure where economic transactions are conducted freely and transparently, allowing for unrestricted competition.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price.