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.
Related information about liquidating dividend:
- Liquidating Dividend Definition | Investopedia
A type of payment made by a corporation to its shareholders during its partial or full liquidation. For the most part, such a distribution is made from the company's ...
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A liquidating distribution (or liquidating dividend) is a type of nondividend distribution made by a corporation to its shareholders during its partial or complete ...
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Definition of Liquidating Dividend in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Liquidating Dividend? Meaning of ...
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A liquidating dividend is used when a corporation is dissolving and it needs to distribute its assets to its shareholders. Paid after satisfying all corporate debts, ...
- Liquidating Dividend: Definition from Answers.com
Return of capital rather than a distribution of retained earnings. Such a dividend may occur with a natural resource company having wasting assets (e.g.,
- What Is a Liquidating Dividend?
A liquidating dividend is a type of dividend payment made to shareholders. Unlike other types of dividends, the payment is generated by utilizing assets other ...
- Accounting for liquidating dividends
When a liquidating dividend occurs, it is considered a return of investment ... A liquidating dividend reduces the carrying amount of the investment account.
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Definition of liquidating dividend: If a company is claiming bankruptcy or will cease business operations, the company will issue this type of payment to ...