liquidating dividend


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.

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

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

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

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