Amount capital dividend liquidating share

The amount of treasury stock is subtracted from stockholders' equity. Number of shares issued on conversion or exercise j. A dividend is classified as a stock dividend when a company issues stock to shareholders as a form of compensation.

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Another possible reason is to increase the number of outstanding shares in the market, broaden ownership of the stock and increase the liquidity of its shares.

Generally, stock dividends are issued from a company’s own stock, or “retained earnings.” There are several possible reasons a company may choose to issue a stock dividend.

One reason could be that it doesn’t have enough cash on hand to make a cash dividend payment, but desires to make some form of payment to shareholders to maintain investor confidence in the company.

Amounts of arrearages in cumulative preferred dividends o.

Amounts at which preferred stock is subject to redemption n.