liquidating dividend

(redirected from Liquidation Dividend)

Liquidating dividend

Payment by a firm to its owners from capital rather than from earnings.

Liquidating Dividend

A dividend paid to shareholders out of a company's capital or assets, rather than its earned income. That is, a liquidating dividend occurs when a company pays more than its total profit in dividends. This usually happens when shareholders believe that the company is no longer sustainable or profitable. Therefore, liquidating dividends are considered a return of shareholders' investments, rather than profit on them. All of the firm's debts must be paid before it can pay liquidating dividends. See also: Final dividend.

liquidating dividend

A pro rata distribution of cash or property to stockholders as part of the dissolution of a business. For example, a firm may be liquidated because the officers believe its stock price does not adequately reflect the value of its assets. All debts and other obligations usually must be satisfied before issuance of a final liquidating dividend. A stock paying a liquidating dividend is indicated in stock transaction tables in newspapers by the symbol C, next to the dividend column. See also final dividend, General Utilities Doctrine.
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A cumulative liquidation dividend payment to shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank (in-liquidation) stood at 373.
Depositors whose claims exceeded the insured amount as at end of August 2012 were paid a liquidation dividend aggregating NRN77.
LOS ANGELES--(BUSINESS WIRE)--July 14, 1995--Insurance Commissioner Chuck Quackenbush Friday announced that the Los Angeles Superior Court has approved his innovative final liquidation dividend plan to complete the Mission Insurance Companies' insurance insolvency receivership.
The commissioner's final liquidation dividend plan, which has been the subject of hearings in Superior Court, sets Aug.
9 million) in the form of liquidation dividends (152.