A dividend which is a return to stockholders of a portion of their original investments is a
A) liquidating dividend.
B) property dividend.
C) liability dividend.
D) participating dividend.

Question

Quizplus · Accepted Answer

A liquidating dividend is paid out to shareholders when a portion of the distribution is from the capital base of the company, essentially returning part of the original investment back to the shareholders.

A Dividend Which Is a Return to Stockholders of a Portion