Which kind of dividend is a return of the original investment by shareholders?
A) cash dividend
B) stock dividend
C) liquidating dividend
D) scrip dividend

Question

Quizplus · Accepted Answer

A liquidating dividend is a distribution to shareholders that returns a portion of their original investment in the company. It is typically paid when a company is winding down its operations or going out of business. Cash dividends and stock dividends are not necessarily a return of the original investment, as they can be paid out of current or accumulated earnings. A scrip dividend is a type of stock dividend where shareholders receive additional shares instead of cash, so it is also not a return of the original investment.

Which Kind of Dividend Is a Return of the Original