Cash distribution
= a payment event
Â
-A company's payment of cash to their shareholders.
Can be:
- Cash Dividend
Cash dividends (most common) are those paid out in the form of "real cash". It is a form of investment interest/income and is taxable in the year that they are paid in. It is the most common method of sharing corporate profits.
- Stock Dividend in Cash
- Â Liquidation proceeds
Dividend:
As part-owner of a company, the shareholder is entitled to a share of the
company's earnings. These earnings are passed on to shareholders in the form of
a dividend.
