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19 Cards in this Set
- Front
- Back
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payout policy |
The way a firm chooses between the alternative ways to pay cash out to shareholders.
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declaration date |
The date on which a public company’s board of directors authorizes the payment of a dividend.
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record date |
The specific date set by a public company’s board of directors on which a shareholder must be on record as owning the shares in order to qualify to be paid the upcoming dividend.
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ex-dividend date |
A date, two days prior to a dividend’s record date, on or after which anyone buying the stock will not be eligible for the dividend.
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payable date (distribution date) |
A date, generally within a month after the record date, on which a firm mails dividend cheques to its registered stockholders
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return of capital |
The payment by a firm of dividends from sources such as paid-in capital or the liquidation of assets instead of from current earnings (or accumulated retained earnings).
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return of capital |
The payment by a firm of dividends from sources such as paid-in capital or the liquidation of assets instead of from current earnings (or accumulated retained earnings).
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open market repurchase |
The repurchasing by a firm of its own shares by buying them on the open market over time.
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tender offer |
A public announcement by a firm of an offer to all existing security holders to buy back a specified amount of outstanding securities at a prespecified price over a short time period, generally 20 days.
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targeted repurchase |
The repurchasing of shares by a firm directly from a specific shareholder; the purchase price is negotiated directly with the seller.
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targeted repurchase |
The repurchasing of shares by a firm directly from a specific shareholder; the purchase price is negotiated directly with the seller.
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cum-dividend |
A modifier indicating that the stock is trading before the ex-dividend date, entitling anyone who buys the stock to the dividend.
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M&M Dividend Irrelevance proposition |
The proposition that, in perfect capital markets, holding fixed the investment policy of a firm, the firm’s choice of dividend policy is irrelevant and does not affect the initial share price.
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dividend puzzle |
A firm’s continuing issuance of dividends despite their tax disadvantage
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clientele effects |
The effects of the tax preferences of a firm’s investor clientele on the firm’s dividend policy
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M&M Payout Irrelevance proposition |
The proposition that, in perfect capital markets, if a firm invests excess cash flows in financial securities, the firm’s choice of payout versus retention is irrelevant and does not affect the initial value of the firm.
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dividend smoothing |
The practice of maintaining relatively constant dividends.
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stock dividend (stock split) |
The issuing by a company of a dividend in shares of stock rather than cash to its shareholders.
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spinoff |
The situation in which a firm sells a subsidiary by distributing the subsidiary’s shares as a non-cash special dividend.
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