A liquidating dividend is a type of payment that a corporation makes to its shareholders during a partial or full liquidation. For the most part, this form of distribution is made from the company's capital base.
A liquidating distribution or liquidating dividend is a type of nondividend distribution made by a corporation or a partnership to its shareholders during its partial or complete liquidation. Instead, the entire amount of shareholders' equity is distributed.
Corporate liquidation results in assets being distributed to creditors and shareholders. A liquidating dividend is used when a corporation is dissolving and it needs to distribute its assets to its shareholders.
Liquidating dividend financial definition of liquidating dividend https: Liquidating dividend Payment by a firm to its owners from capital rather than from earnings.
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