optional dividend
Optional dividend
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Optional Dividend
A dividend where the shareholder may choose how to receive it. Generally speaking, the shareholder may choose between receiving the dividend in cash or in stock. See also: PIK.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
optional dividend
A dividend in which the shareholder may choose among two or more forms of payment. For example, a firm's directors may give the shareholders a choice between cash or an equal dollar amount of stock.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.