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as real estate, merchandise, investments or any other forms of
non-cash assets the board of directors designated
Liquidating dividends
Liquidating dividends is the dividend based on other than
retained earnings. In other words, any dividend not based on
earnings reduces amount paid-in by shareholders and to that
extent, it is a liquidating dividend.
It should be notifications to shar eholders whenever companies
distribute liquidating dividends In order to know the
distribution of profit and capital gain, so they could reduce their
investment accounts.
Share dividends
Share dividends are a proportional distribution of additional
common stocks or preferred stocks issued by company upon
shareholders. It does not change the assets, liability, or
shareholders’ equity at company in any respect.
2.1.4 Dividend payment procedures
After company has settled the dividend policy, there should be adjustment of
some procedural details. In most case, companies pay dividends quarterly. There are a
few steps of dividend payment: (Lease, John, Kalay, Loewenstein & Sarig,
2000)
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