liquidating dividend

Definition

Instead of a distribution from retained earnings, stockholders receive a return of capital. Also a distribution of assets from a company that is going out of business. These payments can be issued to stockholders if a company claims bankruptcy or when company management sells off the assets of the company upon liquidation and subsequently passes the proceeds on to the company's shareholders.

Use this term in a sentence

You should try and break down what the liquidating dividend will be and use it to your best interest if you can.

​ Was this Helpful? YES  NO 2 people found this helpful.

The liquidating dividend was the best way to keep the shareholders happy as the convential dividend distribution method was sub optimal.

​ Was this Helpful? YES  NO 10 people found this helpful.

Upon collection of the proceeds from the Asset Purchase Agreement entered into by my company I will authorize a liquidating dividend to all shareholders.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
liquidated damages liquidating market