Illegal dividend

Definition:

A corporation's dividend that is declared in violation of its charter and/or of state laws, typically because of the way it is calculated.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

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