Common stock dividend

A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of cash or other like stock. The law may regulate the size of the common stock dividend particularly when the payout is a cash distribution tantamount to a liquidation. Such cash dividends may serve the intent of defrauding creditors.

Cash dividend

A cash dividend is the distribution of profits to the common stock shareholders, the owners of the corporation. Such distributions are in equal amounts to the shareholders depending on the portion of the company they own.

Stock dividend

A stock dividend to common stock dividend owners distributes additional stock in the company to the common stock shareholders. Such dividends are evenly distributed to the shareholders depending on their portion of ownership in the corporation. Such distributions maintain their proportional ownership in the corporation.

See also

• Dividend
• Dividend reinvestment plan
• Financial regulation
  • U.S. Securities and Exchange Commission (SEC)
• Common stock
• Stock split

External links

• Securities and Exchange Commission (USA)

This article about stock exchanges is a stub. You can help Wikipedia by expanding it.v · Categories: Corporations law Dividends Stock exchange stubs Wikimedia Foundation. 2010. Игры ⚽ Поможем написать реферат Sports in Erie, Pennsylvania List of diplomatic missions in Japan Look at other dictionaries: common stock — ☆ common stock n. ordinary capital stock in a company without a definite dividend rate or the privileges of preferred stock, but usually giving its owner a vote at shareholders meetings in proportion to the owner s holdings …   English World dictionary Common stock — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia Common Stock Equivalent — Securities such as stock options, warrants, preferred bonds, two class common stock and contingent shares that can be converted into common stock. Sometimes preferred stock can also be converted to common stock. Also called common shares or… …   Investment dictionary Common stock — These are securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company s profits via dividend payments or the capital… …   Financial and business terms common stock — A type of equity or capital representing shares of ownership in a corporation. May or may not receive distributions of corporate income in the form of dividends. Receives the lowest priority for repayment in the event of a corporate liquidation.… …   Financial and business terms Common Stock Fund — A mutual fund that invests in the common stock of numerous publicly traded companies. Common stock funds provide investment diversification and offer time savings over researching, buying and selling individual stocks. Common stocks are shares of …   Investment dictionary common stock —    Shares in a corporation for which dividend payments are calculated on a percentage of net profits and distribution is determined by the board of directors. Holders of common stock usually have voting rights in the elections of directors and on …   Business law dictionary common stock — In the USA, the equivalent of the ordinary shares in a public company or privately held firm that give the holders voting and dividend rights. Common stock holders are paid after bondholders and the holders of preferred stock in the event of… …   Accounting dictionary dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”