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17 Cards in this Set
- Front
- Back
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Dividend
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A payment made out of a firm's earnings to its owners, in the form of either cash or stock.
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Distribution
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A payment made by a firm to its owners from sources other than current or accumulated retained earnings.
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Regular cash dividend
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A cash payment made by a firm to its owners in the normal course of business, usually paid four times a year.
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Declaration date
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The date on which the board of directors passes a resolution to pay a dividend.
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Ex-dividend date
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The date two business days before the date of record, establishing those individuals entitled to a dividend
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Date of record
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The date by which a holder must be on record to be designated to receive a dividend.
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Date of payment
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The date on which the dividend checks are mailed.
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Homemade dividend policy
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The tailored dividend policy created by individual investors who undo corporate dividend policy by reinvesting dividends or selling shares of stock.
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Information content effect
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The market's reaction to a change in corporate dividend payout.
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Clientele effect
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The observable fact that stocks attract particular groups based on dividend yield and the resulting tax effects.
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Residual dividend approach
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A policy under which a firm pays dividends only after meeting its investment needs while maintaining a desired debt-equity ratio.
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Target payout ratio
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A firm's long-term desired divdend-to-earnings ratio.
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Repurchase
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Another method used to pay out a firm's earnings to its owners, which provides more preferable treatment than dividends.
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Stock dividend
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A payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
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Stock split
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An increase in a firm's shares outstanding without any change in owner's equity.
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Trading range
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The price range between the highest and lowest prices at which a stock is traded.
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Reverse split
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A stock split in which a firm's number of shares outstanding is reduced.
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