surplus profit
Corporations. The excess of revenue over expenditures. • Some jurisdictions prohibit the declaration of a dividend from sources other than surplus profit. [Cases: Corporations 151. C.J.S. Corporations § 293.]
Search Results for: EX DIVIDEND
cumulative preferred stock
Preferred stock that must receive dividends in full before common shareholders may receive any dividend. • If the corporation omits a dividend in a particular year or period, it is carried over to the next year or period and must be paid before the common shareholders receive any payment. — Also termed cumulative stock; cumulative
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declaration date
Corporations. The date when corporate directors declare a dividend. Cf. DIVIDEND DATE; EX-DIVIDEND DATE. [Cases: Corporations 152. C.J.S. Corporations §§ 295–299.]
estate freeze
estate freeze. An estate-planning maneuver whereby an owner of a closely held business exchanges common stock for dividend-paying preferred stock and gives the common stock to his or her children, thus seeking to guarantee an income in retirement and to avoid estate tax on future appreciation in the business’s value.
investment
investment. 1. An expenditure to acquire property or assets to produce revenue; a capital outlay. [Cases: Contracts 193.] fixed-dollar investment. An investment whose value is the same when sold as it was when purchased. • Examples are bonds held to maturity, certain government securities, and savings accounts. fixed-income investment. An investment (including preferred stock) that
internal affairs of a foreign corporation
internal affairs of a foreign corporation. Conflict of laws. Matters that involve only the inner workings of a corporation, such as dividend declarations and the selection of officers. [Cases: Corporations 640. C.J.S. Corporations §§ 893, 900.] “The old statement that a court will not hear cases involving the internal affairs of a foreign corporation has
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