Shareholders of a company are entitled to receiving what is known as dividends which are bonuses that investors get if the company does well while their money is with the company. Now one should take note that there are many different types of dividend payments that he can earn. So if one is interested in becoming an investor, then he definitely has to take note of these.
Number one on the list would be the most common type which is known as the cash dividend. Now the board of directors would probably want to give rewards to their investors in the form of cash which is known as the cash dividend. Now the two most important things to take note of here is that the basis of the amount is the principal investment and that there are two dates to remember namely the date of declaration and date of payment.
Another kind would be stock dividends which are the types that are not in the form of cash but in the form of shares of stock. Just like the cash dividends, there would be a declaration date as well as a date of payment wherein one would get his dividends. Now one very important thing to take note would be that only those who have common shares may avail of stock dividends.
Now just for one to understand how this works, it is best to look into an example of when one would invest in the stock market. For example, if one would invest in company A and company A would declare stock dividends, then he will be receiving shares of stocks. In the declaration, the board decided investors will give twenty five percent which is twenty five percent of the stocks one invested in originally.
The third on the list would be property dividends. Now instead of money types, the board of directors may want to give dividends that take the form of property instead. Now probably the most important thing to take note of here is that when it is handed over to the investor, it is always recorded in its fair market value.
Yet another kind would be the scrip dividends. This is usually issued whenever a company would want to issue dividends to its investors but do not have the funds at hand so they offer a promissory note that they will issue it at a certain date. It is pretty much something like an IOU.
Finally, there would be liquidating dividends which are usually given whenever a company would already be ready to close and the board would still want to end on good terms with the investors. Now basically, the board of directors would be returning the principal amount invested by a shareholder in the form of dividends. This is usually done in the liquidation stage of closing down hence the name of the dividend is liquidating divided.
So for those who are willing to become investors, these are some things to know about. If one would want to have deeper knowledge of each, then it would be recommended that he try going for a seminar. If one would want to go for some really good seminars, then he might want to try visiting the city of Florida since there are many speakers there that specialize in this field.
Number one on the list would be the most common type which is known as the cash dividend. Now the board of directors would probably want to give rewards to their investors in the form of cash which is known as the cash dividend. Now the two most important things to take note of here is that the basis of the amount is the principal investment and that there are two dates to remember namely the date of declaration and date of payment.
Another kind would be stock dividends which are the types that are not in the form of cash but in the form of shares of stock. Just like the cash dividends, there would be a declaration date as well as a date of payment wherein one would get his dividends. Now one very important thing to take note would be that only those who have common shares may avail of stock dividends.
Now just for one to understand how this works, it is best to look into an example of when one would invest in the stock market. For example, if one would invest in company A and company A would declare stock dividends, then he will be receiving shares of stocks. In the declaration, the board decided investors will give twenty five percent which is twenty five percent of the stocks one invested in originally.
The third on the list would be property dividends. Now instead of money types, the board of directors may want to give dividends that take the form of property instead. Now probably the most important thing to take note of here is that when it is handed over to the investor, it is always recorded in its fair market value.
Yet another kind would be the scrip dividends. This is usually issued whenever a company would want to issue dividends to its investors but do not have the funds at hand so they offer a promissory note that they will issue it at a certain date. It is pretty much something like an IOU.
Finally, there would be liquidating dividends which are usually given whenever a company would already be ready to close and the board would still want to end on good terms with the investors. Now basically, the board of directors would be returning the principal amount invested by a shareholder in the form of dividends. This is usually done in the liquidation stage of closing down hence the name of the dividend is liquidating divided.
So for those who are willing to become investors, these are some things to know about. If one would want to have deeper knowledge of each, then it would be recommended that he try going for a seminar. If one would want to go for some really good seminars, then he might want to try visiting the city of Florida since there are many speakers there that specialize in this field.
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If you would to know more about the types of dividend payments available, check out this link to The Declaration of Dependence Dividends in the Twenty-First Century. To order the book, come to http://financial-economics.org now.
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