A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a liquidating dividend.
A liquidation distribution is a type of non distributive distribution that a company or partnership makes to its shareholders during partial or complete liquidation. Liquidation distributions are not paid solely from our profits. Instead, the entire stock is distributed.
A liquidation dividend is a type of payment made by a company to its shareholders during partial or total liquidation. This form of distribution is primarily made out of company shares. As a return of capital, this distribution is generally not taxable to shareholders.
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