Illegal Dividend

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Dictionary Says

Definition of 'Illegal Dividend'

A dividend declared by a corporation that is in violation of its charter and/or of state laws. Should such a dividend be declared, the company's board of directors can be sued by its shareholders and creditors; the company may also face prosecution.
Investopedia Says

Investopedia explains 'Illegal Dividend'

Many states prohibit dividend payments from the capital surplus account. Dividends are generally paid out of net income or retained earnings. Illegal dividends may significantly weaken the financial position of the company and expose its creditors to a greater degree of risk.
Search results for

'Illegal Dividend'

  • Why don't investors buy stock just before the dividend date and ...

    http://www.investopedia.com/ask/answers/137.asp
    ... but it is nothing more than an illegal marketing scheme. For example, if Company
    A is trading at $20 a share and is about to offer a $1 dividend and you hurry ...

  • Defining Illegal Insider Trading

    http://www.investopedia.com/articles/03/100803.asp
    ... the company's discovery such as a new drug, an upcoming dividend announcement, an ...
    For the purposes of defining illegal insider trading, a corporate insider is ...

  • Tax Avoidance Or Illegal Evasion? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Tax-Avoidance-Or-Evasion.aspx
    ... Tax Avoidance Or Illegal Evasion? Posted: February 24, 2010 10:18AM by Claire Bradley. ...

  • 4 Dishonest Broker Tactics And How To Avoid Them

    http://www.investopedia.com/articles/02/120502.asp
    ... and the investor can avoid relatively higher taxes on the income from the dividend. ...
    It isn't that these sales charges are illegal, but sometimes the sales ...

  • Should Insider Trading Be Legal? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Should-Insider-Trading-Be-Legal.aspx
    ... Illegal insider trading occurs when an insider buys or sells securities based
    on information which is non-public and material. ... Keep It Illegal! ...

  • 4 Taxes That Didn't Exist 40 Years Ago - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/5-Taxes-That-Didnt-Exist-40-Years-Ago.aspx
    ... $4.50. Illegal Drug Tax At first glance, this seems to be one of the most
    absurd line items the IRS could include on the 1040 Form. ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard III-E ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-preservation-confidentiality.asp
    ... Decisions; 11.29 Degree of Total Leverage; 11.30 Dividend Theories; 11.31 Dividend
    Growth Rate and the Effect of Changing Dividend Policy; ...

  • The Most Outrageous Taxes - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/The-Most-Outrageous-Taxes.aspx
    ... The IRS also charges 2% on illegal wagers, even using the word "illegal"
    on its FAQ page. (The relevant document, Form 730, uses ...

  • Tax Avoidance Vs. Tax Evasion

    http://www.investopedia.com/video/play/tax-avoidance-vs-tax-evasion
    ... Next video: Calculating Net Income. Evading taxes is illegal, but avoiding paying
    unnecessary tax is one of the keys to building wealth. ... What Is A Dividend? ...

  • CFA Level 1 Study Guide - Macroeconomics - Limitations of GDP and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/limitations-gdp-alternative.asp
    ... Decisions; 11.29 Degree of Total Leverage; 11.30 Dividend Theories; 11.31 Dividend
    Growth Rate and the Effect of Changing Dividend Policy; ...

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