Dividend Policy:
“Dividend policy involves the decision to payout earnings or to retain then for reinvestment in the firm.” – Weston and Brigham

Dividend policy refers to the choice of firm to distribute its net earnings to shareholders, or to invest them in the business.” – Khan and Jain

“A company’s policy regarding distribution of its profits between distributions to shareholders and re-investment or reserve.” – Shyamal Banerjee

Stable Dividend Policy:
“Stability of dividends some items means regularly in paying some dividend annually, even though the amount of dividend may fluctuate from over years and may not be related with earnings.” – I. M. Pandey

Stock Dividend or Bonus Dividend:
“A stock dividend is the payment of additional stock to shareholders, represents nothing more than a recapitalization of a company, a stockholders proportional ownership remains unchanged.” – James C. Van Horne

“An issue of bonus share represents a distribution of shares in addition to the cash dividend to the existing shareholder.” – I. M. Pandey

“A stock dividend is the payment to existing owners of a dividend in form of stock.” – L. J. Gitman

Stock Split:
“A stock split is a method commonly used to lower the market price of firms stock by increasing the number of shares belonging to each shareholder.” – L. J. Gitman

“A share split is a method to increase the number of outstanding shares through a proportional reduction in the par value of the share.” – I. M. Pandey

Reserve Stock Split:
“Reserve stock split is a stock split in which the number of shares outstanding is decreased.” – James C. Van Horne

Stock Repurchase:
“Stock repurchase is a transaction in which a firm buys back shares of its own stock.” – E. F Brigham and J. F. Houston

Dividend Reinvestment Plan (DRIP):
“Plan that enables stock holders to use dividends (received) on the firms stock to acquire additional shares.” – L. J. Gitman

DRIP is a plan that enables a stockholder to automatically reinvest dividends received back into the stock of the paying firm.” – E. F. Brigham

N.B: You can also read more Definition.

Write Better, Get Published, Be Creative

Online Publication Opportunities for Young Writers

Digital Study Center is seeking submissions of poetry, short stories, and unique articles for publishing online to our website.

Young writers, author, and teachers are most welcome to Submit Your Writing for Publishing Assistance.

Post a Comment Blogger