A dividend declared out of share capital or share premium is termed a liquidating dividend.

Name: A dividend declared out of share capital or share premium is termed a liquidating dividend.
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A liquidating dividend is a distribution of a company's assets to shareholders, often in the form of cash, when the company is closing down or liquidating its assets. It can be declared out of share capital or share premium, as those are considered part of the company's assets.

A Dividend Declared Out of Share Capital or Share Premium